Comparison Terms

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