Today, we will be discussing how to do this.
Gift Apps & Avatars from Microsoft Store
It is worth noting that gifting works with Avatars and Apps only. If you wish to gift a Movie, Device or a Book from the Microsoft Store, it will not work for you. So, first of all, navigate and open the Microsoft Store on the PC, Xbox or their Website and then navigate to any of your favorite paid apps.
Beside the Buy button, there is a smaller menu button denoted by 3 horizontal dots. Click on it. Now, click on Buy as gift. If you are not logged in to your Microsoft Account, it will prompt you to log in; and if you already are, it will jump directly to the next step. It will now ask who you want to gift it to. You can write there email address in that field and click on Next to proceed further.
A name of the Reciever would be the thing required next. But if you are using an Xbox One, you can just choose the Gamertag of your Xbox Live Friend. One the process is completed, the gift recipient will receive a code for their app or avatar gifted to them with an email. Along with that, a set of instructions on how to redeem their gift will also be sent. Users on an Xbox One will get a system message with a clickable Redeem button. More information Microsoft has imposed some limits in order to avoid the misuse of this feature in any manner. This feature has already started rolling out so check if you can see it.
