**Sample PDF of the Affidavit is attached at the end.
Why this Affidavit is Used
- To legally record that money, movable property, or anything valuable has been given by the donor to the donee as a gift.
- To show that the gift is voluntary, unconditional, and out of natural love and affection, not a hidden loan or transfer under coercion.
- To protect both donor and donee in tax, legal, or family disputes by establishing a clear written record.
When It is Used
- Family transfers (e.g., parents gifting money/property to children).
- Weddings or special occasions when large sums are gifted.
- For income tax purposes, especially to prove that the money received is a "gift" and not taxable as income (if from specified relatives).
- When transferring money/assets to avoid confusion about ownership later.
- For banking and property transactions, where proof of source of funds is required.
Purpose
- To confirm the gift is genuine and irrevocable.
- To safeguard the donee from tax liability by clarifying it as a gift.
- To prevent future claims or disputes by donors or their heirs.
- To provide documentary evidence for banks, income tax departments, or courts.
FAQs
-
Q1. Who needs this affidavit?
-
Any person making a cash gift, bank transfer, or movable property transfer, especially when the value is significant.
-
Q2. Is this the same as a gift deed?
-
No.
Gift Deed = for immovable property (land, flat, house) → must be registered under the Registration Act, 1908, and stamped.
Gift Affidavit: For cash, movable assets, or smaller sums, notarisation is enough. -
Q3. Is it compulsory for gifts to family?
-
Not always. But it is strongly recommended if:
The gift is high-value.
You want tax clarity or future dispute protection. -
Q4. Does the donee have to pay tax?
-
If a gift is from specified relatives (parents, siblings, spouse, children, etc.), it is fully exempt under the Income Tax Act.
If from non-relatives, gifts above ₹50,000 are taxable as "Income from Other Sources". -
Q5. Where is this affidavit executed?
-
On stamp paper (value depends on state rules) and notarised before a Notary Public.
-
Q6. Is witness signature mandatory?
-
Yes, ideally, two witnesses sign along with their details.
-
Q7. Can the donor revoke the gift later?
-
No. Once declared an irrevocable gift, a donor cannot legally reclaim it.
Downloads & Resources
Legal Affidavit Document
AFFIDAVIT / SELF-DECLARATION BY DONOR REGARDING GIFT
Before the Learned Notary Public at ___
DECLARATION
I, Shri/Smt. ___, ___ of Shri/Smt. ___, aged about ___ years, residing at ___, do hereby solemnly affirm and declare as follows:
- That on ___, I have voluntarily, out of natural love and affection, made a gift of Rs. ___ (Rupees ___ only) to Shri/Smt. ___.
- That the aforesaid amount of Rs. ___ has been paid by me through ___ No. ___ dated ___, and the same has been duly recorded as withdrawals from my capital account for the accounting year ___ (Assessment Year ___).
- That the said gift amount has been given out of my own lawful and independent sources. It does not involve any coercion, pressure, or consideration of any kind.
- That from the date of making this gift, the said sum of Rs. ___ shall belong absolutely, exclusively, and irrevocably to Shri/Smt. ___, and I shall have no claim, right, title, or interest over it in the future.
DEPONENT / DONOR
Signature: ___
Name: ___
Address: ___
Date: ___
Place: ___
VERIFICATION
I, the above-named deponent, do hereby verify that the contents of this affidavit are true and correct to the best of my knowledge and belief. Nothing material has been concealed.
Verified at ___ on this ___ day of ___, 20___.
Signature: ___
WITNESSES
1. Name: ___
Address: ___
Signature: ___
2. Name: ___
Address: ___
Signature: ___
Attested before me
Signature & Seal of Notary Public:
___
Add new comment