📌 Introduction
Gifting property is a common practice in Indian families—especially when parents want to transfer assets to children, or siblings exchange property without any monetary consideration.
But here’s the catch: if the gift deed isn’t registered, it’s not legally valid.
Many people assume a simple declaration on stamp paper is enough.
However, under Indian law, only a registered gift deed holds legal weight in the eyes of the court.
This blog will walk you through everything you need to know—from its legal basis, registration process, stamp duty in Karnataka, to the consequences of non-registration.
Let’s decode it step by step.
🧾 What Is a Gift Deed?
A gift deed is a legal document that voluntarily transfers ownership of movable or immovable property from one person (the donor) to another (the donee), without any exchange of money.
It must meet these legal requirements:
- The transfer must be voluntary.
- The donor must be competent to contract.
- The donee must accept the gift during the lifetime of the donor.
- It must be made without consideration (money).
- It must be executed and registered as per law.
The governing law is Section 122 of the Transfer of Property Act, 1882.
🏛️ Is Registration of a Gift Deed Mandatory?
Yes.
Under Section 17 of the Registration Act, 1908, any gift of immovable property must be registered.
An unregistered gift deed has no legal standing.
In the landmark case of K. Balakrishnan v. K. Kamalam, the Supreme Court held that “mere execution of a gift deed without registration is invalid.”
This means:
👉 Even if you have signed a deed, unless it is registered with the sub-registrar, the transfer is incomplete and unenforceable.
🧾 What Documents Are Required for Registration?
Here’s a checklist of what’s generally needed:
| 📄 Document | ✅ Requirement |
|---|---|
| Drafted Gift Deed | On stamp paper with all details |
| Identity Proofs | Aadhaar, PAN, Passport, etc. |
| Proof of Ownership | Original title deed of the donor |
| Encumbrance Certificate | To prove the property is clear of legal dues |
| Property Tax Receipts | Latest payments made |
| Khata Certificate & Extract (for Karnataka) | Shows revenue records |
| No Objection Certificate (if applicable) | Especially in joint family properties |
| Passport-size Photographs | Of both donor and donee |
| Witnesses | Minimum two witnesses required |
💰 Stamp Duty and Registration Charges in Karnataka
Stamp duty varies depending on the relationship between the donor and donee:
| 👨👩👧👦 Relationship | 💵 Stamp Duty | 🧾 Registration Fee |
|---|---|---|
| Immediate family (children, spouse, parents) | ₹1,000 + ₹500 cess | 1% of property value |
| Others (non-family) | 5% – 7% of market value | 1% of property value |
Note: Karnataka has concessional rates for gifts within blood relations.
⚖️ Legal Consequences of Not Registering a Gift Deed
Not registering the gift deed can lead to:
- Loss of legal title to the donee.
- The transaction being declared null and void.
- Issues during property mutation or sale.
- Reversal of possession, especially if the donor dies without registration.
- Disputes during partition or inheritance.
💡 Case Law Reference: In Renikuntla Rajamma v. K. Sarwanamma, (2014) 9 SCC 445, the Supreme Court reiterated that a gift deed must be registered to effect transfer of title.
📌 Common Use Cases in India
- Parents gifting residential property to their children.
- Siblings transferring ancestral land amicably.
- Spouses gifting property as part of estate planning.
- Grandparents transferring land to grandchildren.
🔄 How a Gift Deed Is Different from a Will or Sale Deed
| 📜 Parameter | 🎁 Gift Deed | 📑 Will | 💰 Sale Deed |
|---|---|---|---|
| Consideration | Not required | Not applicable | Required |
| Comes into effect | Immediately on registration | Only after death | Immediately |
| Revocable | Generally irrevocable | Can be modified or revoked anytime | Irrevocable |
| Registration | Mandatory for immovable property | Optional (but advisable) | Mandatory |
| Legal Standing | Immediate legal title | Requires probate in some cases | Immediate legal title |
🧾 Step-by-Step Guide to Registering a Gift Deed
- Draft the Gift Deed with all necessary clauses, property details, and declarations.
- Purchase e-Stamp paper as per the applicable duty.
- Visit the sub-registrar office along with all original documents.
- Present the donor, donee, and two witnesses for signing and biometrics.
- Submit documents and pay fees (in cash/card/demand draft).
- Receive the registered deed with registration number within a few days.
📌 Conclusion
A gift deed is a powerful yet sensitive legal instrument that must be executed with precision and care.
In cities like Bengaluru, where property values are high and family settlements common, failing to register a gift deed can cause years of litigation and emotional distress.
If you’re considering gifting a property or receiving one—always insist on a legally registered deed.
For document drafting, legal vetting, or end-to-end support with property transfers, feel free to reach out to us for expert, hassle-free assistance.
❓ Frequently Asked Questions (FAQs)
1. Is it mandatory to register a gift deed in India?
Yes. For immovable property, registration is compulsory under Section 17 of the Registration Act.
2. Can a gift deed be revoked?
Generally no. Gift deeds are irrevocable unless there’s a specific revocation clause in the deed.
3. Is stamp duty applicable even if it’s within the family?
Yes, but concessional rates apply for close relatives in Karnataka.
4. Can a minor be a donee in a gift deed?
Yes, but the gift must be accepted by a legal guardian on the minor’s behalf.
5. Can I gift property to someone outside the family?
Yes, but higher stamp duty may apply.
6. Can a gifted property be sold later?
Yes, the donee becomes the legal owner and can sell or mortgage the property.
7. Do I need an advocate to register a gift deed?
Not mandatory, but highly recommended to ensure correctness and legal clarity.
8. What is the difference between a gift deed and relinquishment deed?
Gift deed is a voluntary transfer without consideration, whereas relinquishment is usually between co-owners in favor of one.
9. Can I gift part of my property?
Yes, but the boundaries and share must be clearly defined in the deed.
10. Is a notarized gift deed valid without registration?
No. A notarized but unregistered deed is not legally enforceable for immovable property.