A Gift Deed is a legal document that describes voluntary transfer of gift from donor who is the owner of
property to donee who is the receiver of gift without any exchange of money. The donor must be solvent and
should not use this tool for tax evasion and illegal gains. It must be well defined existing movable or
immovable property. It must be transferable. It should exist today and should not be a future property. It should
be tangible.
Advantages
1) It is executed during the life time of donor and transfer happens immediately whereas Will is
applicable after death.
2) Gift deed needs to be registered; only then it is effective. Registration renders it less liable to litigation.
Will on the other hand is prone to litigation.
3) Transfer using gift deeds are tax free in the hands of donor and donee.