Karnataka Gift Deed Stamp Duty: What a Family Transfer Costs

A father in Bengaluru wanted to transfer a flat to his daughter. His first instinct was to do a sale deed, until his lawyer pointed out that a gift deed between them would attract a fixed stamp duty of a few thousand rupees rather than the several lakh a sale at market value would cost. The property moved cleanly into the daughter's name, properly registered, for a fraction of the money. The saving was real, but it depended entirely on the relationship qualifying for the concession, which is where families often trip up.

The short answer. In Karnataka, a gift deed to a specified close family member attracts a concessional fixed stamp duty rather than the percentage of value a sale would cost. For such family gifts the stamp duty is around five thousand rupees in BBMP and BMRDA areas, three thousand in municipal council areas and one thousand in other areas, irrespective of the property value, with a flat registration fee. The trade off to know: this concession applies only to the specified relatives, so a gift to someone outside that list is charged much like a sale, at roughly five percent of the value plus registration, which can be a very different sum.

What is a gift deed, and why register one?

A gift deed is a legal document by which an owner voluntarily transfers a property to another person without any money changing hands. Because there is no consideration, it is a gift rather than a sale, but it is still a transfer of immovable property, so it must be registered to be valid. An unregistered gift of immovable property does not pass ownership, in the same way an unregistered sale does not.

Families use gift deeds to pass property to the next generation, to a spouse, or between close relatives, without the cost and formality of a sale at market value. Done properly, a registered gift deed puts the property cleanly in the recipient's name on the record. The attraction in Karnataka is that when the gift is to a specified family member, the stamp duty is a small fixed amount rather than a percentage of the value, which is what makes it so much cheaper than a sale.

What stamp duty does a family gift deed attract in Karnataka?

For a gift to a specified family member, Karnataka charges a concessional fixed stamp duty that does not depend on the property's value. The stamp duty is around five thousand rupees where the property is in a BBMP or BMRDA area, three thousand rupees in a municipal council area, and one thousand rupees in other areas. Alongside this, the registration fee for such a family gift is a flat amount rather than a percentage, which keeps the total cost low.

The key feature is that these amounts are fixed regardless of whether the flat is worth fifty lakh or five crore, which is precisely why a family gift is so much cheaper than a sale of the same property. Because the exact figures and slabs can be revised, confirm the current amount on the official Karnataka registration department calculator before you execute the deed. Our guide to Karnataka stamp duty and registration charges covers how duty works on a normal sale for comparison.

Who counts as family for the concession?

The concession applies only to specified close relatives, and getting this right is the single most important step. Broadly, the concessional rate is meant for gifts to close family such as a spouse, children, grandchildren and parents, as defined under the Karnataka stamp law. A gift to someone outside the specified list does not get the concession and is charged at the higher rate that applies to a normal transfer.

Because the exact list of qualifying relatives is defined by the statute and the concession can turn on the precise relationship, do not assume a relative qualifies. Some relationships that feel like family may not fall within the specified category and can attract the full duty. Before executing the deed, confirm with the registration department or a lawyer that your specific relationship qualifies, since the difference in cost between the concessional and full rate can be very large.

What does a gift deed to a non family person cost?

A gift to a person who is not a specified family member is charged much like a sale, not at the concessional fixed rate. In that case the stamp duty is calculated as a percentage of the property value, broadly the same five percent that applies to a sale, plus the applicable registration charge. So a gift to a friend, a distant relative outside the specified list, or an unrelated person can cost lakhs where a family gift of the same property would cost a few thousand rupees.

This is why the relationship, not the intention to gift, drives the cost. Two identical gift deeds for the same flat can attract wildly different duty depending only on who the recipient is. If your intended recipient is not on the specified family list, budget for duty at sale like rates and confirm the exact figure on the official calculator before you proceed.

What should the recipient check and do?

The recipient should ensure the gift deed is properly drafted, that it records the absence of consideration, and that it is duly registered, because registration is what actually transfers ownership. Acceptance of the gift by the recipient during the donor's lifetime is essential, and the deed should be clear on this. Watch for any clause about revocation, since a gift is generally intended to be irreversible once accepted and registered, and an unusual revocation clause deserves legal scrutiny.

After the gift deed is registered, complete the same follow up steps as any acquisition: transfer the khata into the recipient's name and update the property tax records, so the municipal record matches the new ownership. Our note on guidance value in Bengaluru is useful too, because even for a gift the property value context and the official calculator matter when you confirm the duty.

Gift or sale: which route and when?

Choose a gift deed when the transfer is genuinely without consideration and the recipient is a specified family member, because then the concessional fixed duty makes it far cheaper than a sale. Choose a sale deed when money is actually changing hands, or when the recipient is outside the specified family list and the duty would be the same either way. The table below sets out the family gift duty by area against a non family gift.

Whichever route applies, the property still needs a clean title and proper registration, whether it is a modest flat or a home such as one at Sattva Serene Life.

What is the takeaway?

The takeaway is that a gift deed is a genuinely economical way to transfer property within a close family in Karnataka, but only when the relationship qualifies for the concession and the deed is properly drafted, accepted and registered. The saving over a sale can be large, yet it evaporates if the recipient is outside the specified family list, where the duty climbs to sale like rates.

So confirm the relationship qualifies and the current figures before you execute anything, and complete the khata transfer afterwards. This guide explains the costs and the concession; whether a gift or a sale suits your situation depends on your relationship and intent, which only you can decide with proper advice.

Seven step gift deed checklist

1. Confirm the transfer is genuinely without consideration, making it a gift rather than a sale.
2. Confirm the recipient is a specified family member who qualifies for the concession.
3. Check the current concessional stamp duty for your area on the official calculator.
4. Have the gift deed properly drafted, recording the absence of consideration and the acceptance.
5. Register the gift deed, since registration is what actually transfers ownership.
6. After registration, transfer the khata and update the property tax records.
7. Take legal advice, especially if the relationship's eligibility for the concession is unclear.

Do this before executing the deed, not after. The family concession makes a gift deed a powerful and cheap tool for a genuine family transfer, but the cost hinges entirely on the relationship qualifying and the deed being done correctly. Confirm both, and the transfer is clean and inexpensive.

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

For a gift to a specified family member, Karnataka charges a concessional fixed stamp duty regardless of the property value: around five thousand rupees in BBMP and BMRDA areas, three thousand in municipal council areas, and one thousand in other areas, plus a flat registration fee. Confirm the current figure on the official calculator before executing the deed.

Is a gift deed cheaper than a sale deed in Karnataka?

For a genuine gift to a specified family member, yes, because the stamp duty is a small fixed amount rather than a percentage of value. For a gift to someone outside the specified family list, no, because it is charged much like a sale at around five percent of the value. So the saving depends entirely on the relationship qualifying.

Does a gift deed need to be registered?

Yes. A gift of immovable property must be registered to be valid, because registration is what actually transfers ownership, just as with a sale. An unregistered gift deed does not pass title. The recipient must also accept the gift during the donor's lifetime, and the deed should clearly record both the absence of consideration and that acceptance.

Do all relatives qualify for the gift deed concession?

No. The concession applies only to specified close relatives defined under the Karnataka stamp law, such as a spouse, children, grandchildren and parents. Some relationships that feel like family may fall outside the specified list and attract the full duty. Confirm with the registration department or a lawyer that your specific relationship qualifies before executing the deed.

Last updated 2026-09-08. PropNewz Team.