Gift Deed

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 Preparing a gift deed for movable property (such as cash or bank transfers) is straightforward. Unlike real estate, a gift deed for monetary transfers does not mandate compulsory registration at a Sub-Registrar Office, but executing a written and notarized declaration provides complete legal protection.

What the Gift Deed Should Contain

  • Personal Details: Full names, dates of birth, residential addresses, and PAN details of both the mother (Donor) and the daughter (Donee).

  • Relationship Declaration: An explicit statement establishing that they are mother and daughter (qualifying as "relatives" under Section 56(2) of the Income Tax Act).

  • Transaction Specifics: The exact amount transferred (₹7 lakh), the date of the transfer, the payment mode (UPI/online bank transfer), and the specific bank details (SBI account of the mother and PNB account of the daughter).

  • Voluntary Intent Clause: A clear declaration stating that the mother is transferring the money out of natural love and affection, completely of her own free will, without any coercion, force, or monetary consideration in return.

  • Acceptance Clause: A statement showing that the daughter formally accepts the gift.

  • Signatures: Signatures of both the mother and the daughter, along with two independent witnesses.

How to Prepare It

  1. Drafting: You can draft the text yourself using a standard cash/monetary gift deed template or have a local lawyer or document writer put it together.

  2. Printing on Stamp Paper: Purchase a non-judicial stamp paper of a nominal denomination (such as ₹100 or ₹500, depending on local state availability for general agreements) and print the finalized text onto it.

  3. Notarization: Take the printed deed, along with the identity proofs (PAN and Aadhaar) of the mother, daughter, and two witnesses, to a licensed public notary. Both parties must sign the document in front of the notary, who will verify their identities, apply an official seal, and enter it into the notarial register.

Estimated Cost

  • Stamp Paper Cost: Around ₹100 to ₹500 (standard for declarations and movable gift agreements).

  • Notary Fees: Typically ranges between ₹100 and ₹500 depending on the notary public.

  • Legal/Typing Fees (Optional): If you choose to hire a lawyer or documentation writer to draft it, they may charge anywhere from ₹1,000 to ₹3,000.

Total out-of-pocket expenses typically stay well under ₹2,000, creating an inexpensive safeguard that permanently resolves any compliance ambiguity.








  • Use a Notarized Gift Affidavit/Declaration: Instead of a casual plain-paper note, spend a nominal amount to draft a brief Gift Declaration on a ₹100 non-judicial stamp paper and get it signed before a Notary Public. This takes 15 minutes and transforms your informal note into a legally robust document.

  • Explicit Narration: Ensure the bank transfer description is clear (e.g., "Gift from Father [Name] to Daughter [Name]").

  • File ITR Properly: Even though the gift is tax-free, if your daughter files an Income Tax Return (ITR), it is a best practice for her to disclose it under the "Exempt Income" schedule to match her asset build-up with tax records.