Introduction
A gift is a common way of transferring property under Hindu law. It allows a person to give property voluntarily to another person without receiving anything in return.
The law lays down rules regarding the validity, capacity, and conditions of such gifts.
Meaning / Definition
A gift means the transfer of property without consideration (without payment or exchange) from one person (donor) to another (donee).
It involves:
- Relinquishment (giving up) of ownership by the donor
- Acceptance by the donee
A gift is complete only when the donee accepts it.
Modes or Types
What Property Can Be Gifted
The following types of property can be gifted:
- Self-acquired property (property earned or bought by oneself)
- Property under both Mitakshara and Dayabhaga schools of Hindu law
- Ancestral property under Dayabhaga law
- Impartible property (property that cannot be divided), unless restricted by custom
- Stridhan (woman’s property)
- Small portions of property inherited by a widow
- Movable property (property that can be moved, like money or jewellery) received by a widow
- Small portions of coparcenary property (joint family property) in the hands of a father
Essentials of a Valid Gift
For a gift to be valid:
- It need not be in writing
- There must be delivery of possession (transfer of control or ownership)
- The donee must accept the gift
If physical delivery is not possible, the donor must do everything possible to transfer control to the donee.
Capacity of the Donor
The donor must:
- Be a major (above 18 years)
- Be of sound mind (mentally capable of understanding actions)
A coparcener (member of joint family with birth rights in property) cannot gift his undivided share without consent of other coparceners.
However, he can make a will (legal document to transfer property after death).
Capacity of the Donee
The donee must:
- Be in existence at the time of the gift (physically or legally recognised)
The donee can be:
- A minor
- A person with mental incapacity
- A person otherwise disqualified from inheritance
Reservation of Life Interest
A gift is valid even if the donor keeps the right to use or enjoy the property during his lifetime (life interest).
Conditions Restraining Transfer
If a gift includes a condition that completely restricts the donee from selling or transferring the property, such condition is void (not legally valid).
However, the gift itself remains valid.
Revocation of Gift
A valid gift cannot be revoked (cancelled) once made.
However, if a gift is made to:
- Defraud creditors (avoid paying debts)
It can be challenged and set aside by the creditors.
Distinction / Comparison
Gift vs Will
| Basis | Gift | Will |
|---|---|---|
| Timing | Takes effect during lifetime | Takes effect after death |
| Consideration | No consideration | No consideration |
| Revocation | Cannot be revoked once valid | Can be revoked anytime before death |
| Transfer | Immediate transfer of ownership | Transfer happens after death |
Practical Example
A father gives a piece of land to his daughter during his lifetime without taking any money.
The daughter accepts the gift and takes possession of the land.
This is a valid gift, and the father cannot later cancel it unless it was made to cheat creditors.
Summary
- A gift is transfer of property without consideration.
- It requires acceptance by the donee.
- It can be made without writing but must involve delivery of possession.
- The donor must be a major and of sound mind.
- Certain types of property like self-acquired and stridhan can be gifted.
- A valid gift cannot be revoked except in limited cases like fraud on creditors.