Gift Deed and Stamp Duty Registration Charges in Karnataka (2025)

Are you thinking of gifting your property, like a house or land, to a family member in Karnataka? Then, you need to understand the applicable stamp and registration charges. When it comes to transferring property or land to a loved one, it comes under the gift deed rules in Karnataka.

Whenever you are involved in any real estate transaction, it attracts stamp duty for legal validation and official record-keeping. Hence, let’s understand what a gift deed is, why it is important, and the applicable gift deed stamp duty in Karnataka, as well as the registration charges you have to pay under state regulations.

What is a Gift Deed?

A gift deed is a legal document by a property owner (donor) to voluntarily transfer property to another person (donee) without any exchange of money. For even a gift, you need to go through the gift deed process and get a valid registration. A gift deed is a popular transfer deed in blood relation, like parents to their children.

This deed is governed by the Indian Administration Act, 1908 and the Karnataka Stamp Act 1957. It is a transfer without any money being paid in return. Therefore, the state government treats it differently, not like a sale. That is why the stamp duty on a gift deed in a blood relation in Karnataka is very minimal and low compared to other real estate transfers.

The registration and stamp duty charges are determined based on the value, types and location of the property and who you are transferring to. It is not a fixed amount that is charged. Gift deed registration charges in Karnataka vary.

Types of properties covered under the gift deed

• Immovable property: land, residential, commercial building, agricultural property, etc.
• Movable property: cash, jewellery, shares, stock, bonds, artwork, etc.

Understand Stamp Duty & Registration Charge for Gift Deeds in Karnataka

In a gift transfer, there is no financial transaction. That is why the financial cost of registering a gift deed in Karnataka is not fixed. The cost of stamp duty & registration charge depends upon the value of the property you are going to transfer. Let’s check out the charges of registration and stamp duty in Karnataka.

The Registration charges for any kind of deed are fixed at 1%, but the stamp duty charges for different types of deeds in Karnataka vary. Stamp duty on gift deed in a blood relation in Karnataka is different from the stamp duty on a gift deed in a non-blood relation in Karnataka. Let’s understand it

The cost of stamp duty & registration charge depends upon the value of the property you are going to transfer. You can also refer to the detailed breakdown of stamp duty and registration charges in Bangalore for different property transactions.

How to Calculate the Charges for a Gift Deed?

Let’s understand how much you have to pay with a gift deed transfer. The charges are based on the property amount, value, and type of transfer. Here are some practical steps that make everything clear to you when gifting a property in Karnataka.

• Determine if the donee is a “specified family member” (spouse, children, parents, siblings, etc) or not.
• Determine the location of the property, whether it comes in a City Corporation, like BBMP, BMRDA, etc, municipal council/town panchayat or other like rural or outside the city area. The charges vary according to the location.
• Determine the market value of the property. The stamp duty varies according to the market value of the property.
• Calculate the correct rate
• If you are transferring to the family, then a fixed amount based on the location (₹1,000/3,000/5,000) + registration fee (₹500 typically)
• If you are transferring to the non-family, then the amount will be 5% × market value + surcharge + additional duty, registration fee 1% × market value
• Add surcharges/cess where applicable. For example, urban areas may levy an additional 2% surcharge, rural zones 3%
• Go for registration with stamp duty fees and registration charges. You must register at the sub-registry office. Authorised people verify the documents and update your record.

Simple Example: Understand Stamp Duty & Registration Charges in Karnataka

Suppose you are gifting your house to your children (transfer deed in blood relation), which comes in the municipal council area. You determine that the value of your property is about 50 lakhs. So now, rather than paying 5%, which is 2.5 lakh like a sale deed, you only have to pay Rs 3000 stamp duty plus registration fee of Rs 500.

If you are gifting your property to a non-family person, then you have to pay 5% of 50 Lakh, which is 2.5 lakh stamp duty plus registration fee, 1%, which will go around 50,000. Stamp duty: ₹2.5 lakh + registration fee 1% = ₹50,000 (plus surcharge/cess).

At last, you will see an obvious difference. If you are gifting a property to your family member, then you can save a lot of money. That is why gift deeds are quite popular, and they save a huge amount for the donor.

Step-by-Step Gift Deed Registration Process

Now you know everything, how much you have to pay. Let’s understand the process of registration for gift deeds.

• First, prepare your gift deed document. You can draft your gift deed with the help of a professional, and it must be signed by both the donors and the donee.
• Visit the sub registrar office with your donee.
• Submit the gift deed document along with identity proof, property ownership proof, etc.
• Pay the registration fee for the gift deed. You can pay through a draft or online.
• After successful registration and verification, you will get your updated gift deed document.
• Provide a copy of the deed to the donee.

After successful registration and verification of your document, you will get your gift deed updated document. If you’re unfamiliar with how the overall property registration process in Bangalore works, this guide can help you understand the complete steps involved at the sub-registrar office.

Gift Deed vs. Will: Which is Better?

You might be wondering, Is a gift deed different from a will. If yes, how is it different? Let’s understand the difference between a gift deed and a will for estate planning.

Conclusion

Gifting a property in Karnataka can be a thoughtful way to transfer your property to your loved ones, but remember, there is a huge difference when you are transferring a property to a family member or a non-family member. The stamp duty fee gives you a huge difference.

Professionals like KhataBroker can also guide you through related procedures, such as BBMP Khata transfer process in Bangalore, to ensure that ownership records are updated after a gift deed registration.

They have a team of professionals who help you to avoid nasty surprises, legal snags, and ensure that the property is transferred with valid and future-proof documents. Always ensure that the deed is properly drafted and registered to make the transfer legally sound in the future.

FAQs (Frequently Asked Questions)