Money Gift Deed Format for Cash, Cheque or Bank Transfer
Updated specimen for documenting a voluntary monetary gift to a family member or other person, with current Income-tax Act guidance and safer payment wording for cheque, bank transfer or other permitted banking modes.
Legal Position for a Gift of Money
Under Sections 122 and 123 of the Transfer of Property Act, 1882, a gift is a voluntary transfer made without consideration and accepted by or on behalf of the donee. In the case of movable property, the transfer may be effected by a registered instrument or by delivery. Money is movable property, and a written gift deed is commonly used as documentary evidence of the donor's intention, the donee's acceptance and the source and mode of transfer.
A written deed for a monetary gift should clearly identify the donor and donee, their relationship, the amount gifted, the voluntary and unconditional nature of the gift, the source of funds, the mode and date of transfer, and the donee's acceptance. Stamp-duty and execution requirements may vary under the applicable State law, so local requirements should be checked where the document is to be executed.
Income-tax Treatment of Monetary Gifts
Where Section 56(2)(x) applies to a sum of money received without consideration and the aggregate value exceeds ₹50,000, the whole amount covered by that provision can be chargeable to tax under "Income from other sources", rather than only the amount above ₹50,000.
For an individual, the statutory meaning of "relative" includes the spouse; brother or sister of the individual; brother or sister of the spouse; brother or sister of either parent; lineal ascendants or descendants of the individual; lineal ascendants or descendants of the spouse; and the spouses of specified relatives. The actual relationship should therefore be checked against the statutory definition rather than relying on the ordinary meaning of "relative".
Money Gift Deed Format
This Deed of Gift is made at ________________ on this ___ day of __________, 20__.
BETWEEN
Mr./Ms. ________________________________, son/daughter/spouse of ________________________________, aged about ___ years, residing at ________________________________________________, PAN __________________, hereinafter referred to as the "Donor", which expression shall, unless repugnant to the context, include his/her legal representatives and permitted assigns;
AND
Mr./Ms. ________________________________, son/daughter/spouse of ________________________________, aged about ___ years, residing at ________________________________________________, PAN __________________, hereinafter referred to as the "Donee", which expression shall, unless repugnant to the context, include his/her legal representatives and permitted assigns.
WHEREAS:
- The Donee is the __________________ of the Donor.
- The Donor is lawfully possessed of and absolutely entitled to his/her own funds and is competent to make the present gift.
- Out of natural love and affection / personal regard and of the Donor's own free will, without consideration, coercion or undue influence, the Donor has decided to gift a sum of ₹____________ (Rupees __________________________________ only) to the Donee.
- The said amount has been / is being transferred from the Donor's bank account by account-payee cheque / account-payee bank draft / NEFT / RTGS / IMPS / other permitted electronic banking mode, details whereof are set out below.
NOW THIS DEED WITNESSETH AS FOLLOWS:
- The Donor hereby voluntarily, absolutely and irrevocably gifts to the Donee a sum of ₹____________ (Rupees __________________________________ only), without any consideration.
- The gift is made from the Donor's own lawful and accounted-for funds and the Donor confirms that the amount is free from any claim, lien or encumbrance.
- The monetary gift has been transferred / shall simultaneously be transferred as follows:
Bank: ________________________________
Branch: ______________________________
Cheque / UTR / Transaction No.: __________________
Date: __.__.20__
Amount: ₹________________ - The Donee hereby accepts the said gift and acknowledges receipt / transfer of the gifted amount.
- Upon completion of the transfer and acceptance, the Donor shall have no right, title, interest or claim in the gifted amount, and the Donee shall be entitled to use the amount for any lawful purpose.
- The parties confirm that the gift is genuine, voluntary and without consideration and that the statements made in this deed are true to their knowledge.
- The parties shall comply with applicable tax, banking, reporting, stamp-duty and other legal requirements arising from this gift.
IN WITNESS WHEREOF, the Donor and the Donee have signed this Deed of Gift on the date and at the place first mentioned above.
DONOR
Signature: __________________
Name: ______________________
DONEE
Signature: __________________
Name: ______________________
Witnesses
1. Signature: __________________
Name: ______________________
Address: ____________________
2. Signature: __________________
Name: ______________________
Address: ____________________
Essential Details in a Money Gift Deed
- Date and place of execution.
- Full name, address, age and identification details of the donor and donee.
- Exact relationship between donor and donee, particularly if a tax exemption for a gift from a "relative" is being relied upon.
- Exact amount gifted in figures and words.
- Source of funds and clear statement that the gift is voluntary and without consideration.
- Cheque, UTR or banking transaction details for traceability.
- Express acceptance of the gift by the donee.
- Signatures of donor, donee and witnesses, where used.