India, March 15 -- A gift deed is used to voluntarily transfer assets without consideration during the donor's lifetime. A Will, on the other hand, is a legal declaration that outlines how a person's assets should be distributed after their death. Here's what you should know about the tax implications associated with both instruments and how much tax may be payable in each case.

Ramesh Mehta, a 68-year-old retiree, owns a house worth Rs.2 crore. He wants to pass it on to his daughter, Neha. If he uses a gift deed, the house will be transferred to Neha immediately after the document is registered and accepted. However, Ramesh will have to pay stamp duty and registration charges. Once the gift is made, he will no longer be the legal owner....