Gift Deed in Bangalore: Stamp Duty, Registration & Tax (2026)

A parent wants to put a flat in a child's name. A couple wants to add a spouse as the owner. A gift deed is the usual way to do it, and in Karnataka it can cost a tiny fraction of what a sale would. But the details matter, and several of them are quoted differently by different sources.

In simple terms

A gift deed transfers ownership of a property from one person to another without any payment, out of love or goodwill. The giver is the donor and the receiver is the donee. Like a sale deed, it must be written, stamped and registered, and once it is registered and accepted, it generally cannot be taken back.

What a Gift Deed Costs in Karnataka

Gift To	Stamp Duty
Specified family member, Bengaluru / city corporation area	Commonly cited as a flat ₹5,000
Specified family member, town panchayat area	Commonly cited as a flat ₹3,000
Specified family member, other areas	Commonly cited as a flat ₹1,000
Anyone else (friend, cousin, non-relative)	About 5% of market value, plus surcharge and cess

Sources disagree on two points, so check before you budget. First, the registration fee is quoted as a flat ₹500 by some guides, ₹1,000 by others, and a percentage of property value by others again. Second, whether siblings qualify for the flat family rate is described differently across sources. Confirm both with the Sub-Registrar or the Kaveri portal before you finalise a deed.

Why It Can Be So Cheap

Compare the two routes on a flat valued at ₹1 crore. A sale deed would carry percentage-based stamp duty plus a registration fee, which as our Stamp Duty & Registration guide explains, runs into lakhs of rupees. A qualifying family gift deed pays a small flat amount instead. That is why gift deeds are popular within families, and also why the family conditions are checked carefully.

Is the Gifted Property Taxed?

● Property received as a gift from close relatives, such as parents, spouse or siblings, is generally not taxed in the recipient's hands
● Property gifted by a non-relative can be taxable as income for the recipient above a small value threshold
● The family definition for stamp duty and the relative definition for income tax are not the same list, so qualifying under one does not automatically mean the other
● If the recipient later sells the gifted property, capital gains tax can apply, and the original owner's purchase cost and holding period generally carry over

Income tax provisions are being renumbered under the new Income Tax Act, so ask a chartered accountant to confirm the current rules for your case.

Step-by-Step Process

Confirm the donor owns it clearly

Check the title, the Khata, the Encumbrance Certificate and that the property tax is paid. A donor can only give what they legally own.

Check for a loan

If the property is mortgaged, speak to the lender first, because a transfer usually needs their consent.

Draft the gift deed

The deed should name both parties, describe the property accurately, state the relationship, and say that the gift is voluntary and without payment.

Pay the stamp duty

Pay the applicable duty through the government e-stamping system.

The donor, the donee and two witnesses attend with ID proof. The donee’s acceptance is recorded.

Update the Khata and other records

After registration, apply for the Khata transfer and update the electricity and tax records in the new owner’s name.

Step 6 is easy to forget. See our Khata Transfer guide and BESCOM name transfer guide.

Gift Deed, Sale Deed or Will?

	Gift Deed	Sale Deed	Will
Money paid?	No	Yes	No
Ownership changes	On registration	On registration	After the owner's death
Can the giver take it back?	Generally no	No	Yes, until death

Mistakes to Avoid

● Using a gift deed to disguise a sale. If money actually changes hands, it is a sale, and calling it a gift to save stamp duty can create serious legal and tax problems
● Skipping registration, since an unregistered gift deed does not transfer ownership
● Gifting a property that is mortgaged or in dispute without clearing it first
● Vague property descriptions or mismatched names across ID, Khata and the deed
● Forgetting to update the Khata, tax and electricity records afterwards

Frequently Asked Questions

Can a gift deed be cancelled later?

Generally not once it is registered and accepted. Cancellation is possible only in limited situations, such as fraud or coercion, and usually needs a court. Be sure before you sign.

Does the person receiving the gift have to be present?

Acceptance by the donee is part of a valid gift, and both parties normally attend registration with ID proof and witnesses.

Can I gift a flat that still has a home loan?

You would normally need the lender's written consent. Speak to the bank before you draft anything.

Is a gift deed better than a will?

A gift deed transfers ownership now and is hard to reverse. A will only takes effect after death and can be changed anytime. The right choice depends on whether you want to give up control today.

Planning a family property transfer?

APKACOMPLEX helps with property documentation, registration coordination and Khata updates for transfers across Bangalore.

View Pricing & Get Started

Source & verification

Last verified: October 2026. Stamp duty on gift deeds is governed by the Karnataka Stamp Act, 1957, and registration by the Registration Act, 1908. Published guides differ on the registration fee for family gifts and on which relatives qualify for the flat rate, and these can change by notification. Always confirm the current amounts and eligibility with your local Sub-Registrar or on the official Kaveri Online Services portal before you proceed. This article is general guidance, not legal or tax advice. Have a property lawyer prepare the deed.