Execution (taking effect) Takes effect upon the death of the testator Takes effect during the lifetime of Donor and Donee. It takes effect during the lifetime of the co-owner towards another co-owner.
Comparison in terms of
Will
Gift
Relinquishment Deed
Execution (taking effect)
Takes effect upon the death of the testator.
Takes effect during the lifetime of the Donor and Donee.
It takes effect during the lifetime of the co-owner towards another co-owner.
Registration
Registration is not mandatory but it can be registered
Registration is mandatory under section 17 of the Registration Act 1908.
Registration is mandatory under section 17 of the Registration Act, of 1908.
Registration charges
Payable
Payable
Payable
Stamp duty
No stamp duty is Payable
Stamp duty payable Between close relatives, stamp duty is exempted in many States
Stamp duty payable
Consideration
A Will is made without any consideration.
A Gift deed is made without any consideration.
A relinquishment deed may or may not have an element of consideration.
Tax Implications
There are no tax implications on the beneficiary.
A Gift received from close relatives or during marriage is exempt from tax liability and in other cases gift with a value exceeding Rs. 50,000/- is taxable at the hands of Donee.
There are no tax benefits for a 'transfer' under a relinquishment deed. Therefore, relinquishing a right in property against monetary consideration will attract capital gains for the transferor. Further, the tax will be levied only upon the portion of property in which the right is relinquished.
Revocation
A Will can only be revoked in accordance with section 70 of the Succession Act.
A gift deed cannot be revoked; however, it can be challenged in a court of law on the grounds of fraud or coercion.
A relinquishment deed is irrevocable even if it is without any consideration. It can be only challenged in a court of law on the grounds of fraud or coercion
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Read MoreComparison Terms
Execution (taking effect) Takes effect upon the death of the testator Takes effect during the lifetime of Donor and Donee. It takes effect during the lifetime of the co-owner towards another co-owner.
Comparison in terms of
Will
Gift
Relinquishment Deed
Execution (taking effect)
Takes effect upon the death of the testator.
Takes effect during the lifetime of the Donor and Donee.
It takes effect during the lifetime of the co-owner towards another co-owner.
Registration
Registration is not mandatory but it can be registered
Registration is mandatory under section 17 of the Registration Act 1908.
Registration is mandatory under section 17 of the Registration Act, of 1908.
Registration charges
Payable
Payable
Payable
Stamp duty
No stamp duty is Payable
Stamp duty payable Between close relatives, stamp duty is exempted in many States
Stamp duty payable
Consideration
A Will is made without any consideration.
A Gift deed is made without any consideration.
A relinquishment deed may or may not have an element of consideration.
Tax Implications
There are no tax implications on the beneficiary.
A Gift received from close relatives or during marriage is exempt from tax liability and in other cases gift with a value exceeding Rs. 50,000/- is taxable at the hands of Donee.
There are no tax benefits for a 'transfer' under a relinquishment deed. Therefore, relinquishing a right in property against monetary consideration will attract capital gains for the transferor. Further, the tax will be levied only upon the portion of property in which the right is relinquished.
Revocation
A Will can only be revoked in accordance with section 70 of the Succession Act.
A gift deed cannot be revoked; however, it can be challenged in a court of law on the grounds of fraud or coercion.
A relinquishment deed is irrevocable even if it is without any consideration. It can be only challenged in a court of law on the grounds of fraud or coercion
Also Read: Use cases where Gift deed, will or Relinquishment deed can be used