Section 406: Donation or gift deemed to be effected

1) If a person grants free of cost a property in which the person has right and ownership to another person, or for any religious, social, public, or community purpose, such an act shall be deemed to be a donation.

2) If a person grants free of cost a property in which the person has right and ownership to another person as a reward, prize, or tip in consideration for merits to him or her by that other person by way of fostering him or her or otherwise or for family love or affection, such an act shall be deemed to be a gift.

3) In effecting a donation or gift pursuant to sub-section (1) or (2), such a donation or gift may be so effected that it is effective immediately or after a certain period or after the death of its maker.

4) If a donation or a gift becomes effective only after the death of the maker of such donation or gift, it shall be deemed that he or she has executed a testamentary donation or testamentary gift.