A Gift is generally regarded as a transfer of ownership of a property where the sender

willingly brings into effect such transfer without any compensation or consideration in
monetary value. It may be in the form of moveable or immoveable property and the parties
may be two living persons or the transfer may take place only after the death of the transferor.
When the transfer takes place between two living people it is called inter vivos, and when it
takes place after the death of the transferor it is known as testamentary. Testamentary
transfers do not fall under the scope of Section 5 of the Transfer of Property Act, and thus,
only inter vivos transfers are referred to as gifts under this Act.
What may be referred to as a gift:
Section 122 of Transfer of Property Act defines a gift as the transfer of an existing moveable
or immovable property. Such transfers must be made voluntarily and without consideration.
The transferor is known as the donor and the transferee is called the donee. The gift must be
accepted by the donee. This Section defines a gift as a gratuitous transfer of ownership in
some property that is already existing. The definition includes the transfer of both immovable
and moveable property.
Essential elements
There are the following five essentials of a valid gift:
 Transfer of ownership
 Existing property
 Transfer without consideration
 Voluntary transfer with free consent
 Acceptance of the gift
Transfer without consideration:
A gift must be gratuitous, i.e., the ownership in the property must be transferred without any
consideration. Even a negligible property or a very small sum of money given by the
transferee in consideration for the transfer of a very big property would make the transaction
either a sale or an exchange. Consideration, for the purpose of this section, shall have the
same meaning as given in Section 2(d) of the Indian Contract Act. The consideration is
pecuniary in nature, i.e., in monetary terms. Mutual love and affection is not pecuniary
consideration and thus, property transferred in consideration of love and affection is a transfer
without consideration and hence a gift. A transfer of property made in consideration for the
‘services’ rendered by the donee is a gift. But, a property transferred in consideration of
donee undertaking the liability of the donor is not gratuitous, therefore, it is not a gift because
liabilities evolve pecuniary obligations.
Acceptance of gift:
The donee must accept the gift. Property cannot be given to a person, even in gift, against
his/her consent. The donee may refuse the gift as in cases of non-beneficial property or
onerous gift. Onerous gifts are such where the burden or liability exceeds the actual market
value of the subject matter. Thus, acceptance of the gift is necessary. Such acceptance may be
either express or implied. Implied acceptance may be inferred from the conduct of the donee
and the surrounding circumstances. When the donee takes possession of the property or of the
title deeds, there is acceptance of the gift. Where the property is on lease, acceptance may be
inferred upon the acceptance of the right to collect rents. However, when the property is
jointly enjoyed by the donor and donee, mere possession cannot be treated as evidence of
acceptance. When the gift is not onerous, even minimal evidence is sufficient to prove that
the gift has been accepted by donee. Mere silence of the donee is indicative of the acceptance
provided it can be established that the donee had knowledge of the gift being made in his
favour.
Where the deed of gift categorically stated that the property had been handed over to the
donee and he had accepted the same and the document is registered, a presumption arises that
the executants are aware of what was stated in the deed and also of its correctness. When
such presumption is coupled with the recital in the deed that the donee had been put in
possession of the property, the onus of disproving the presumption would be on the donor and
not the donee.
Where the donee is incompetent to contract, e.g., minor or insane, the gift must be accepted
on his behalf by a competent person. The gift may be accepted by a guardian on behalf of his
ward or by a parent on behalf of their child. In such a case, the minor, on attaining majority,
may reject the gift. 
Where the donee is a juristic person, the gift must be accepted by a competent authority
representing such legal person. Where the gift is made to a deity, it may be accepted by its
agent, i.e., the priest or manager of the temple.
Section 122 provides that the acceptance must be made during the lifetime of the donor and
while he is still capable of giving. The acceptance that comes after the death or incompetence
of the donor is no acceptance. If the gift is accepted during the life of the donor but the donor
dies before the registration and other formalities, the gift is deemed to have been accepted
and the gift is valid.

Modes of making a gift:

Section 123 of the Transfer of Property Act deals with the formalities necessary for the
completion of a gift. The gift is enforceable by law only when these formalities are observed.
This Section lays down two modes for effecting a gift depending upon the nature of the
property. For the gift of immovable property, registration is necessary. In case the property is
movable, it may be transferred by the delivery of possession. Mode of transfer of various
types of properties are discussed below:
Immovable properties
In the case of immovable property, registration of the transfer is necessary irrespective of the
value of the property. Registration of a document including gift-deed implies that the
transaction is in writing, signed by the executant (donor), attested by two competent persons
and duly stamped before the registration formalities are officially completed. In the case
of Gomtibai v. Mattulal, it was held by the Supreme Court that in the absence of written
instrument executed by the donor, attestation by two witnesses, registration of the instrument
and acceptance thereof by the donee, the gift of immovable property is incomplete.
The doctrine of part performance is not applicable to gifts, therefore all the conditions must
be complied with. A donee who takes possession of the land under unregistered gift-deed
cannot defend his possession on being evicted. The following must be kept in mind regarding
the requirement of registration:
 Registration of the gift of immovable property is must, however, the gift is not
suspended till registration. A gift may be registered and made enforceable by law
even after the death of the donor, provided that the essential elements of the gift are
all present.
 In case the essential elements of a valid gift are not present, the registration shall not
validate the gift.
It has been observed by the courts that under the provisions of the Transfer of Property Act,
Section 123, there is no requirement for delivery of possession in case of an immovable gift.
The same has been held in the case of Renikuntla Rajamma v. K. Sarwanamma that the mere
fact that the donor retained the right to use the property during her lifetime did not affect the
transfer of ownership of the property from herself to the donee as the gift was registered and
accepted by the donee. 
Suspension or revocation of gifts:
Section 126 of the Act provides the legal provisions which must be followed in case of a
conditional gift. The donor may make a gift subject to certain conditions of it being
suspended or revoked and these conditions must adhere to the provisions of Section 126. This
Section lays down two modes of revocation of gifts and a gift may only be revoked on these
grounds.
Revocation by mutual agreement:
Where the donor and the donee mutually agree that the gift shall be suspended or revoked
upon the happening of an event not dependent on the will of the donor, it is called a gift
subject to a condition laid down by mutual agreement. It must consist of the following
essentials:
 The condition must be expressly laid down.
 The condition must be a part of the same transaction, it may be laid down either in the
gift-deed itself or in a separate document being a part of the same transaction.
 The condition upon which a gift is to be revoked must not depend solely on the will of
the donor.
 Such condition must be valid under the provisions of law given for conditional
transfers. For eg. a condition totally prohibiting the alienation of a property is void
under Section 10 of the Transfer of Property Act.
 The condition must be mutually agreed upon by the donor and the donee.
  Gift revocable at the will of the donor is void even if such condition is mutually
agreed upon.
Revocation by the rescission of the contract:
Gift is a transfer; it is thus preceded by a contract for such transfer. This contract may either
be express or implied. If the preceding contract is rescinded, then there is no question of the
subsequent transfer to take place. Thus, under Section 126, a gift can be revoked on any
grounds on which its contract may be rescinded. For example, Section 19 of the Indian
Contract Act makes a contract voidable at the option of the party whose consent has been
obtained forcefully, by coercion, undue influence, misrepresentation, or fraud. Thus, if a gift
is not made voluntarily, i.e., the consent of the donor is obtained by fraud, misrepresentation,
undue influence, or force, the gift may be rescinded by the donor.
The option of such revocation lies with the donor and cannot be transferred, but the legal
heirs of the donor may sue for revocation of such contract after the death of the donor.
The limitation for revoking a gift on the grounds of fraud, misrepresentation, etc, is three
years from the date on which such facts come to the knowledge of the plaintiff (donor). 
The right to revoke the gift on the above mentioned grounds is lost when the donor ratifies
the gift either expressly or by his conduct.
Bonafide purchaser:
The last paragraph of Section 126 of the Act protects the right of a bonafide purchaser. A
bonafide purchaser is a person who has purchased the gifted property in good faith and with
consideration. When such a purchaser is unfamiliar with the condition attached to the
property which was a subject of a conditional gift then no provision of revocation or
suspension of such gift shall apply.
Exceptions
Section 129 of the Act provides the gifts which are treated as exceptions to the whole chapter
of gifts under the Act. These are:
 Donations mortis causa
These are gifts made in contemplation of death. 
 Muslim-gifts (Hiba)
These are governed by the rules of Muslim Personal Law. The only essential requirements
are declaration, acceptance and delivery of possession. Registration is not necessary
irrespective of the value of the gift. In case of a gift of immovable property worth more than
Rupees 100, Registration under Section 17 of the Indian Registration Act is must, as it is
applicable to Muslims as well. For a gift to be Hiba only the donor is required to be Muslim,
the religion of the donee is irrelevant.
Conclusion:
To constitute a transfer as a gift it must follow the provisions of the Transfer of Property Act.
This Act extensively defines the gift itself and the circumstances of the transfer of such a gift.
The gift, being a transfer of the ownership rights, must be in possession and ownership of the
transferee and must be existing at the time of making the transfer. The transferor must be
competent to make such transfer but the transferee may be any person. In case the transferee
is incompetent to contract, the acceptance of gift must be ratified by a competent person on
his/her behalf. Gift of future property is void. Partial acceptance of prosperous gifts and
rejection of onerous gifts is not valid either. The acceptance of a gift entails the acceptance of
the benefits as well as the liabilities coupled with such a gift. A gift may be revoked only by a
mutual agreement on a condition by the donor and the donee, or by rescinding the contract
pertaining to such gift. The Donations mortis causa and Hiba are the only two kinds of gifts
which do not follow the provisions of the Transfer of Property Act.

 https://indiankanoon.org/doc/1067813/
 https://www.business-standard.com/article/pf/primer-all-you-wanted-to-know-about-
the-gift-deed-act-114031200104_1.html
