When a retired father in Jayanagar decided to pass his flat to his daughter, a broker told him the simplest route was a sale deed, which would have meant paying stamp duty of 5 percent of the market value, several lakh on a valuable Bengaluru flat. A lawyer stopped him. Because the transfer was to his daughter, a gift deed would do the same job for a fixed stamp duty of a few thousand rupees. The instrument you choose for a family transfer can be the difference between a token fee and a very large one.

The short answer. In Karnataka, a gift deed transferring immovable property to a specified family member attracts a concessional flat stamp duty, commonly of the order of 5,000 rupees within Bengaluru city limits, plus a fixed registration fee, instead of the 5 percent charged on a normal transfer. A gift to someone who is not a family member is taxed like a sale, at the full percentage of market value. The trade off to understand is that a gift deed must be registered to be valid, and once the gift is accepted it is generally irrevocable, so it is a deliberate step rather than a casual one.

What is a gift deed?

A gift deed is a legal instrument by which an owner voluntarily transfers property to another person without receiving payment in return. That absence of consideration is what distinguishes it from a sale, where money changes hands. A gift can be made to anyone, but Karnataka reserves a large stamp duty concession for gifts to specified family members, which is why the instrument is so widely used for passing property between parents and children or between spouses.

It is also distinct from the deeds used to divide jointly held property. A partition splits property already co-owned among the co-owners, and a release surrenders one co-owner's share to another. A gift, by contrast, moves a property the donor owns outright to a new person as an outright transfer. Choosing the correct instrument for your situation matters, because the stamp duty and the legal effect differ.

Two conditions sit at the heart of a valid gift. First, it must be voluntary, made freely and without any coercion or undue influence, which is why gifts extracted under pressure can later be challenged. Second, the person receiving the gift must accept it during the lifetime of the person giving it, because a gift is not complete until it is accepted. These are not paperwork technicalities, they are the elements that make the transfer stand up if it is ever questioned, so a well drafted gift deed records both the voluntary nature of the gift and the acceptance by the recipient.

How much does a family gift deed cost in Karnataka?

For a gift to a specified family member, the stamp duty is a fixed amount rather than a percentage of value. Within Bengaluru and other city corporation or metropolitan development authority areas it is commonly around 5,000 rupees, with lower fixed figures in municipal council and town panchayat areas and in other areas, alongside a fixed registration fee of around 1,000 rupees. Because personal figures can be revised, confirm the current amounts on the official Karnataka stamps and registration portal at igr.karnataka.gov.in or with your sub registrar before you register.

The contrast with a non family gift is stark. A gift to someone outside the specified relatives is charged like a sale, at 5 percent of the market value plus applicable cess and surcharge, with a 2 percent registration fee. On a property worth a crore or more, that is the difference between a few thousand rupees and several lakh, which is exactly why establishing the relationship correctly, and documenting it in the deed, matters so much for a family transfer.

Read the table and the logic is clear: the concession rewards keeping a transfer within the family, while a gift outside it is treated no differently from a sale for stamp duty purposes.

Who counts as a family member?

The concession applies to a defined list of relatives, so the relationship must fit that list to qualify. It generally covers close family such as a spouse, son, daughter, daughter-in-law, father, mother, brother, sister and grandchildren, as specified under the state stamp law. Because the exact list is what decides whether you pay a few thousand rupees or several lakh, confirm that your specific relationship is covered before you assume the concessional rate applies.

If the relationship does not fit the defined list, the transfer is not disqualified, it simply loses the concession and is charged like a sale. That is an important planning point, because a gift to a relative who falls outside the specified list, such as a more distant relation, will not attract the fixed fee and should be budgeted at the full rate.

Why must a gift deed be registered?

Registration is what makes a gift of immovable property legally effective, not an optional formality. Under the law governing transfers of property, a gift of immovable property must be made by a registered instrument, so an unregistered gift, however sincere, does not pass clean title to the recipient. Registration also puts the transfer on the public record, which protects the recipient and anyone who deals with the property later.

There is a further point that makes a gift a serious decision. Once a gift has been made and accepted, it is generally irrevocable, meaning the donor cannot simply change their mind and take the property back. A gift can be revoked only in limited circumstances, such as where the deed itself reserved a right of revocation on agreed conditions, or where it is set aside on legal grounds. Treat a gift deed as a considered, largely final step rather than a reversible one.

How does this affect a buyer checking a title?

If a property you are buying was gifted somewhere in its chain of ownership, verify that the gift was validly executed. Confirm the gift deed was registered, that it was made to a person who could receive it, and, crucially, that any conditions attached to it were satisfied. A conditional gift whose conditions were not met, or a gift that was validly revoked, can weaken the title that later passed down the chain.

This is where a gift in the history of a property becomes a diligence item rather than a detail. Ask your lawyer to read any gift deed in the chain alongside the encumbrance certificate and the rest of the title documents, so that a transfer which looked clean on the surface is confirmed to be clean underneath.

A common example makes the point. A property gifted by a parent to one child, with a condition that the parent be cared for or allowed to reside there, can carry that condition forward in a way that affects a later buyer. If you are buying such a property, you want to know whether the condition was fulfilled or has fallen away, because an unmet condition attached to an earlier gift is the kind of hidden thread that can unravel a title years later. Treating every gift in the chain as a question to be answered, rather than a document to be filed, is what keeps your own purchase safe.

A seven step gift deed checklist

1. Confirm the recipient is a specified family member to qualify for the concessional stamp duty.
2. Check the current fixed stamp duty and registration fee on igr.karnataka.gov.in for your area.
3. Prepare the gift deed clearly stating the property, the donor, the donee and the absence of consideration.
4. Decide whether any conditions apply, and state them explicitly if so.
5. Register the gift deed at the sub registrar office, since registration is compulsory.
6. Ensure the donee accepts the gift during the donor's lifetime, as acceptance is essential.
7. For any tax question on the gift, consult a qualified tax adviser before completing it.

Following this order keeps a family transfer both cheap and clean, and it removes the doubts that surface years later. For the related instruments used to divide family property, see our guide to partition, settlement and release deeds in Karnataka, and for how ordinary transfers are taxed, see our note on Karnataka stamp duty and registration charges.

How much stamp duty is a gift deed to a family member in Karnataka?

For a gift to a specified family member, the stamp duty is a fixed amount rather than a percentage, commonly around 5,000 rupees within Bengaluru city limits, plus a fixed registration fee of around 1,000 rupees. Lower fixed figures apply in smaller municipal and other areas. Confirm the current amounts on igr.karnataka.gov.in or with your sub registrar before registering.

What if I gift property to someone who is not family?

A gift to a person outside the specified family list does not lose validity, but it loses the concession. It is charged like a sale, at 5 percent of market value plus cess and surcharge, with a 2 percent registration fee. So budget such a gift at the full rate, not the fixed family fee.

Can a registered gift deed be cancelled later?

Generally no. Once a gift has been made and accepted, it is largely irrevocable, and the donor cannot simply take the property back. Revocation is possible only in limited situations, such as where the deed reserved a right of revocation on agreed conditions, or where it is set aside on legal grounds.

Does a gift deed need to be registered to be valid?

Yes. A gift of immovable property must be made by a registered instrument to be legally effective, so an unregistered gift does not pass clean title. Registration also records the transfer on the public register, which protects the recipient and anyone dealing with the property later. Budget for the registration step as compulsory, not optional.

Last updated 2026-07-15. PropNewz Team.