Gift Deed for Property in Karnataka – Stamp Duty, Rules and Revocation

A gift deed is one of the most common ways families in Bangalore transfer property during the owner’s lifetime, for example from a parent to a child or between spouses. Because Karnataka charges a much lower fixed stamp duty on gifts to close family members, it can be far cheaper than a sale. But a gift is hard to undo once made, so it needs to be done carefully. This guide explains the rules.

What a Valid Gift Requires

Under Sections 122 and 123 of the Transfer of Property Act, a gift of immovable property must be made:

• voluntarily and without any payment;
• by a written document signed by the donor and attested by at least two witnesses;
• by registration of that document at the Sub-Registrar office; and
• with acceptance by the person receiving it, during the donor’s lifetime.

An unregistered gift deed for immovable property does not transfer ownership.

Stamp Duty and Registration Fees

Karnataka charges a concessional fixed stamp duty on gifts to specified family members, such as a spouse, children, parents, siblings and grandchildren. Within Bengaluru city limits, the fixed duty has been around ₹5,000, with lower amounts in smaller towns and rural areas, plus a small fixed registration fee. Gifts to anyone outside the specified family are charged like a sale: about 5.6% of the market value as stamp duty and 2% as the registration fee. These figures are revised from time to time, so check the current amounts with the Sub-Registrar before you register.

Gift Deed vs Settlement Deed vs Will

• Gift deed: transfers the property immediately and permanently.
• Settlement deed: often used to distribute family property, sometimes with the owner keeping a right to live in it or receive income for life.
• Will: takes effect only after death, and can be changed at any time before that. See our guide to wills and inheritance of property.

The right choice depends on whether you want the transfer to take effect now, whether you want to keep any rights, and the tax and family position.

Can a Gift Be Revoked?

A registered gift that has been accepted generally cannot be cancelled. Section 126 of the Transfer of Property Act allows revocation only in limited cases, such as where the parties agreed that it could be revoked on a specified event, or where it was obtained by fraud or undue influence.

There is one important exception for senior citizens. Under Section 23 of the Maintenance and Welfare of Parents and Senior Citizens Act, 2007, if a senior citizen gifts property on the condition that the person receiving it will look after them, and that person fails to do so, the Maintenance Tribunal can declare the transfer void. Writing that condition clearly into the gift deed makes this protection easier to use.

After the Gift

Once the gift deed is registered, the person receiving the property should apply to transfer the khata or e-Khata into their name and update the tax records. See our guide to khata and e-Khata transfer.

Frequently Asked Questions

Who counts as family for the lower stamp duty on gifts in Karnataka?

The concession generally covers close relatives such as a spouse, son, daughter, father, mother, brother, sister and grandchildren. Check the current list before registering.

Can I take back property I gifted to my son?

Generally no, once the gift is registered and accepted. But if you are a senior citizen and gifted it on condition of being cared for, the Maintenance Tribunal can cancel it if that condition is broken.

Is a gift deed better than a will?

It depends. A gift takes effect immediately and cannot easily be undone. A will takes effect only after death and can be changed. Take advice based on your family situation.

Is income tax payable on a gift of property from a parent?

Gifts from specified relatives, including parents, are generally not taxed in the hands of the person receiving them. Take advice from a chartered accountant for your case.