Gift to parent

Does gifting money to a parent, from an IT point of view, require a gift deed?

Advisable to record the gift over 100Rs. stamp paper, with the particualrs of cheque or bank transfer and acceptance of gift.

If yes, is the gift deed to be on plain paper or stamp paper (value?)?

Generally, over Rs. 100/- 

Will the money so gifted be added to the income of the parent and attract income tax?

Certainly not.

Can the money be freely used to buy a property?

Yes, free to utilize as per their wish.