Sections 123-125 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
A gift is valid only if it is made in the form the law requires. Section 123 sets that form: a registered instrument, signed by the donor and attested by at least two witnesses, for immovable property, and either a registered instrument or delivery for movable property. Sections 124 and 125 deal with gifts of future property and gifts to several people. This is explained as per the text of the Act consulted.
A gift of immovable property must be made by a registered instrument signed by or on behalf of the donor and attested by at least two witnesses. A gift of movable property may be made by such an instrument or by delivery, in the same way goods sold are delivered. A gift of existing and future property is void as to the future property (section 124). A gift to two or more donees, one of whom does not accept, is void as to his share (section 125).
Source and State note
The text consulted is a publisher's print of the Act showing amendments up to the Transfer of Property (Amendment) Act, 2002 (3 of 2003); later amendments should be checked. Some States have amended the Act or made local rules, and the position in your State should be checked; nothing from any State is described here. What a gift is, and how it is accepted, is in section 122, which has its own post: Gift of Immovable Property, Section 122.
Stamp duty and registration fees are not in this Act, and no amount is stated here. For the registration process, see how to register a gift deed; for duty, see stamp duty on a gift deed. If you want a gift deed drafted correctly, our agreement drafting service can prepare it.
Section 123: how the transfer is effected
Gift of immovable property
"For the purpose of making a gift of immovable property, the transfer must be effected by a registered instrument signed by or on behalf of the donor, and attested by at least two witnesses."
The text sets four requirements:
- an instrument, in writing;
- that is registered;
- signed by or on behalf of the donor (the donor himself, or someone signing for him);
- attested by at least two witnesses.
The word "must" leaves no other route for immovable property on the text. What "registered" and "attested" mean in this Act is in our article on those definitions under section 3.
Gift of movable property
For a gift of movable property, the transfer may be effected either by a registered instrument signed as aforesaid or by delivery. Such delivery may be made in the same way as goods sold may be delivered. So a gift of jewellery can be completed by handing it over, without a document, while a gift of a house cannot.
| Property | How the gift must or may be made |
|---|---|
| Immovable | Registered instrument, signed by or on behalf of the donor, attested by at least two witnesses |
| Movable | Registered instrument signed as above, or delivery as goods sold are delivered |
For movable property the instrument must be registered, and the text describes it only as "signed as aforesaid"; it does not repeat the two-witness requirement in that paragraph, so the deed should be read with the first paragraph in mind.
Section 124: gift of existing and future property
A gift comprising both existing and future property is void as to the latter. The existing part can stand; the future part cannot. The section does not define future property.
Example. Savita signs a registered gift deed giving her son her current flat and "any property I may buy in the future". The gift of the flat is not hit by section 124; the part relating to property she may buy later is void.
Section 125: gift to several, one of whom does not accept
A gift of a thing to two or more donees, of whom one does not accept it, is void as to the interest which he would have taken had he accepted. The others take their own shares.
Example. A donor gives a plot jointly to three nieces, and one of them declines. The gift is void as to the third share she would have taken; the other two can accept theirs. The text does not say who then owns the declined share.
Why the form matters
Gifts are transfers without consideration, and the Act asks for a strict form. For the idea that an agreement without consideration is normally not enforceable, and its exceptions, see our article on Section 25 of the Indian Contract Act, 1872; the reader should check the current law for the corresponding provision of that Act.
Once a gift is made, revocation is limited; see our article on section 126. Gifts with burdens are in the article on sections 127 to 129.
Checklist before signing a gift deed of immovable property
- Is the instrument in writing and registered?
- Is it signed by the donor, or on his behalf?
- Is it attested by at least two witnesses?
- Does it describe existing property only? Anything future will be void.
- If there are several donees, has each accepted?
- Have you checked State rules and the stamp duty position separately?
Need help with a gift deed?
A gift deed that misses the registration, signature or witness requirement can fail at the first step. Our agreement drafting team can draft the deed and walk you through the formalities.
Key takeaways
- A gift of immovable property needs a registered instrument, signed by or on behalf of the donor and attested by at least two witnesses.
- A gift of movable property may be by a registered instrument or by delivery.
- A gift of existing and future property is void as to the future property.
- A gift to several donees is void as to the share of a donee who does not accept.
- Stamp duty and registration charges are separate; check your State.
- Some States have amended the Act or made local rules.
Read next
- Section 126: when a gift can be suspended or revoked
- Sections 127 to 129: onerous gifts, universal donee and gifts in contemplation of death
- Gift of Immovable Property, Section 122
- Specimen gift deed for movable and immovable property
Disclaimer: Based on a publisher's print of the Transfer of Property Act, 1882 showing amendments up to the Transfer of Property (Amendment) Act, 2002 (3 of 2003), as consulted on 2 October 2026. State amendments, later amendments, stamp duty and registration charges are not covered and should be checked. This article is general information, not legal advice; check the official text before acting.