Now it's gift time (7,3)
I believe the answer is:
present day
'now' is the definition.
(I've seen this before)
'gift time' is the wordplay.
'gift' becomes 'present' (synonyms).
'time' becomes 'day' (day is a kind of time).
'present'+'day'='PRESENT-DAY'
'it's' acts as a link.
(Other definitions for present day that I've seen before include "Christmas for materialists?" , "occasion for lots of give and take?" , "Current" , "twenty-fifth of December?" , "Contemporary" .)