Gift Deed Format for Money

By the MuftTools.in teamUpdated October 2026How we check

When a gift deed for money helps

Parents often send money to a son or daughter for a home down payment, a car, a wedding or a course abroad. Spouses move savings between their accounts. Grandparents put money in a grandchild's account. None of this needs a deed to be a valid gift: the Transfer of Property Act, 1882 lets movable property, which includes money, be gifted simply by delivery. A written gift deed is about evidence. It shows that the money was a gift and not a loan, a business receipt or unexplained income, and it ties the gift to a bank entry that anyone can check.

That matters when a bank asks where a home-loan margin came from, when the income-tax department asks about a large credit in an account, or years later when family members disagree about whether money was lent or given.

What this format says

• The donor and donee, with relation, age and address, and the donee's relation to the donor (son, daughter, wife and so on).
• The amount in figures and in words, and where it came from, such as the donor's savings or salary.
• How it was paid: bank transfer from one account to another with the UTR number, or cheque or demand draft with its number and date. A cash option is there for small sums.
• That the donee has accepted the gift, that it is not a loan or advance and need not be repaid, that it was given freely, and that it cannot be taken back.
• Signatures of the donor and donee, with two witnesses.

Gifts of money and income tax

Under section 92(2)(m) of the Income-tax Act, 2025, money received without consideration is taxed as income from other sources when the total received in a tax year is more than ₹50,000. In that case the whole amount is taxed, not just the part above ₹50,000. Section 92(3) switches this rule off for money from a relative, money received on the occasion of your marriage, and money received under a will or by inheritance.

The definition of relative in section 92(5)(g) covers your spouse, brothers and sisters, your spouse's brothers and sisters, your parents' brothers and sisters, your ancestors and descendants in both lines, your spouse's ancestors and descendants, and the spouses of all of these. Cousins and friends are not on the list, so a gift from them above the limit can be taxed.

Pay large gifts through the bank. Section 186 of the same Act says no one may receive ₹2,00,000 or more in cash from one person in a day, in one transaction or for one occasion, and the penalty can equal the amount. A bank transfer also gives you a record that matches the deed.

Practical tips

1. Make the transfer first, then fill in the date and UTR number from the bank statement.
2. Pay from the donor's own account, not a third person's, so the source of the money is clear.
3. Keep the signed deed with the bank statements of both accounts.
4. If the gift is for buying a home, add your own clause, for example “The Donee may use the amount towards the purchase of Flat No. 304”.

This is a draft format, not legal advice, and it doesn't replace advice from a chartered accountant on your tax position. Stamp paper and notarisation rules differ by state. Nothing you type leaves your browser.

Other gift deed formats

• Gift deed in Hindi

Need more options? Open the full Gift Deed Format Generator.