Procedure For Gift Deed Registration

A Gift Deed is a legal document that allows an individual (the donor) to voluntarily transfer ownership of property or assets to another person (the donee) without any exchange of money. In the context of real estate, a Gift Deed can be used to transfer ownership of a property (land, house, etc.) from one person to another, typically within a family or close relations.

In India, for a Gift Deed to be valid and legally recognized, it must be registered under the Indian Registration Act, 1908. This registration process ensures that the transfer of property is legally binding and officially recorded.

Here is a step-by-step guide on the procedure for registering a Gift Deed in India (specifically in Bangalore):

1. Eligibility for Gift Deed

• Donor: The person gifting the property must be the legal owner of the property and must be of sound mind and at least 18 years of age.
• Donee: The recipient of the gift must be a person capable of holding property (can be an individual, a relative, a friend, etc.).
• Property: The gift can include any kind of property – movable or immovable (land, house, shares, etc.).

2. Drafting the Gift Deed

The Gift Deed must be drafted carefully to ensure it is legally sound. The deed should contain:

• Donor's and Donee's details: Full name, address, and relationship of the donor and donee.
• Description of the property: Clear details of the property being transferred (address, survey number, or property ID).
• Declaration of gift: A statement from the donor declaring that the property is being given voluntarily, without any consideration or payment.
• Date and place of execution: The date and location where the gift deed is signed.
• Witnesses: The deed must be signed by two witnesses.

You can hire a legal expert (lawyer or advocate) to draft the Gift Deed to ensure all legal formalities are followed.

3. Payment of Stamp Duty

• Stamp Duty: A gift deed is subject to stamp duty, which is a tax levied by the government to validate the transaction.
  • The stamp duty for a Gift Deed on immovable property is generally 2% of the property’s market value or the sale value (whichever is higher) in Karnataka.
  • In case the gift is being made to a relative, the stamp duty may be reduced in some states (e.g., 0.5% to 1% for relatives in Karnataka).
• Payment of Stamp Duty: You can pay the stamp duty either online or at the sub-registrar's office. Once the payment is made, a receipt will be issued.

4. Execution of the Gift Deed

The Gift Deed must be executed in the presence of two witnesses. Both the donor and the donee must sign the deed, along with the witnesses. Ensure that the donor is mentally sound at the time of signing, as the gift must be made voluntarily.

5. Visiting the Sub-Registrar’s Office

The next step is to visit the Sub-Registrar's Office for the registration of the Gift Deed. The Sub-Registrar is the government official who authenticates the transaction and registers the property in the donee’s name.

• The sub-registrar office should be chosen based on the location of the property. You can check the list of sub-registrar offices in Bangalore or consult the Karnataka Registration Department.

6. Documents Required for Registration

When visiting the Sub-Registrar’s office, ensure you have the following documents:

• Original Gift Deed: The signed Gift Deed document.
• Identity Proofs: Identity proof (Aadhaar card, passport, etc.) of the donor and donee.
• Address Proof: Address proof of both parties.
• PAN Card: Required for both the donor and the donee, especially if the property’s market value exceeds ₹5 lakh.
• Witnesses: Two witnesses, who should also bring their identification proof.
• Stamp Duty Payment Receipt: Proof of payment of the applicable stamp duty.

7. Biometric Verification

Both the donor and the donee must undergo biometric verification (fingerprints and photographs) at the Sub-Registrar’s office for identity confirmation.

8. Registration of the Gift Deed

• The Sub-Registrar will verify all documents and ensure that everything is in order.
• Both the donor and the donee will sign the Gift Deed in the presence of the Sub-Registrar and the witnesses.
• The registrar will affix the official stamp on the deed, registering the gift transaction.
• A registration number will be assigned to the deed.

9. Receiving the Registered Gift Deed

After the registration is completed, the registered Gift Deed will be handed over to the donee. This document is proof that the property has been legally transferred to the donee.

The gift is now complete, and the donee is the new legal owner of the property.

10. Post-Registration Formalities

• Mutation of Property: The donee must apply to the local municipal authority (BBMP in Bangalore) for the mutation of the property. This will ensure that the property records are updated with the donee’s name as the new owner.
• Transfer of Utilities: The donee should ensure that the utility bills (electricity, water, etc.) are transferred into their name.
• Update Property Tax Records: The donee should also update the property tax records with the municipal authority.

Key Points to Remember:

• Gift Deed is Voluntary: The donor must not receive any monetary or other benefits in return for the property being gifted.
• Gift Deed Cannot Be Revoked: Once registered, the gift deed cannot be revoked unless there’s fraud or coercion.
• Gift to Relatives: Stamp duty for gifts to relatives (spouse, children, siblings, etc.) is typically lower than for non-relatives.
• No Financial Consideration: Unlike sale deeds, a Gift Deed involves no exchange of money or compensation.