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You have a certain property in mind, long cherished and treasured and are waiting for the perfect timing to arrive to gift it to a special someone. The occasion may be marriage, anniversaries, birthdays, old age or just a token of appreciation for having someone who supported you all their life. In a gesture of generousness like yours, at LegalDesk.com, we too have come up with user-friendly services to guide you through the various formalities that go into creating a Gift Deed in Karnataka.

The Four-Step Formula To Preparing A Gift Deed in Karnataka

1. The property (movable or immovable) that you intend to gift should be registered in the Donor’s name. Further, you have to ensure that you have all the documents concerning the property ready.
2. Using LegalDesk.com, start editing the draft Gift Deed and include the clauses suitable to your need, including all the information on the Donor and the Donee.
3. Download and print the Gift Deed on a Stamp Paper and have the document signed by the Donor and the Donee in the presence of two witnesses. Or you could also get the printed Gift Deed delivered to your home as we also provide delivery and speed delivery options.
4. If it is an immovable property register the Gift Deed at a local Sub-Registrar Office.

What Is A Gift Deed?

A Gift Deed is a transfer of a property (both movable and immovable), voluntarily and without consideration from the Donor to the Donee without the involvement of any monetary exchange.

Any coercion or undue influence on the part of Donee or anybody related to the Donee can be duly contested in a Court. The court will hence render any Gift Deed violating the Indian Contract Act, 1871, null and void. This is one of the limited ways one can revoke a Gift Deed, as otherwise, it is nearly impossible to quash or invalidate a Gift Deed.

When Is A Gift Deed Invalid?

A Gift Deed can be rendered as invalid or null in the following circumstances,

1. When the Gift Deed is not voluntarily parted.
2. There is a consideration for the gift being demanded by the Donor.
3. The Gift Deed is signed between minors or if the Donor is a minor
4. The Property transferred is a future property, one that is not registered in the Donor’s name.
5. Donor is not of sound mind.
6. When the Donee doesn’t sign the Gift Deed or is not willing to accept the gift.

Laws Overseeing The Gift Deed In Karnataka

Chapter VII of Transfer Of Property Act, 1882, concerns the various formalities surrounding the creation of a Gift Deed.

As defined in the Act, Gift, “is the transfer of certain existing movable or immovable property made voluntarily and without consideration, by one person, called the donor, to another called the donee, and accepted by or on behalf of the donee.”

The Stamp Duty that is levied on the Gift Deed is calculated based on the percentages stipulated by The Karnataka Stamp Act, 1957. Furthermore, the registration charges of a Gift Deed can be referred to from the Section 17 of The Registration Act, 1908.

What Is The Stamp Duty Payable?

A recent insertion in Article 28 of The Karnataka Stamp Act has now brought concessions to the amount of Stamp Duty to be paid when gifting a property to someone who is part of one’s ‘family’. Earlier the concept of family was limited to husband, wife, son, daughter, daughter-in-law, brothers, sisters and grandchildren. Gift Deed transaction among them would only amount to Rs. 1000 as Stamp Duty, irrespective of the value of the property. With the new amendment, father and mother were brought into the concept of ‘family’ and therefore, even parents getting property through Gift Deeds will also be charged Stamp Duty.

At present, the stamp duty rates for Gift to family members (father, mother, husband, wife, son, daughter, daughter-in-law, brother, sister and grandchildren) in Karnataka are as follows:

The total charges applicable in case of family members and non-family members are as given below:

*Surcharge: on the Stamp Duty calculated as per above, based on whether the property is situated within the limits of Municipal Corporation of Municipality.

Why Registration?

Registration isn’t compulsory for all kinds of Gift Deeds. The Transfer Of Property Act maintains that registration of a non-movable property is compulsory but not so for a movable property, be it jewellery or a vehicle. The registration charges are based entirely on the value of the property. If the Gift Deed is addressed to a non-familial member, makes up 1% of the total Guidance value of the Property. Otherwise, a beneficiary among the family will only pay Rs. 500 as Registration fee.

Points To Remember Before Drafting Your Agreement

1. Gifting A Minor

It should be noted that according to the according to Transfer Of Property Act, one cannot transfer a Gift to a minor who hasn’t come of age. If a minor should receive one, the minor’s guardian will be responsible for acceptance of the said gift. Once the minor turns 18, he/she can either accept the Gift Deed or refuse it. In the event where the adult refuses to accept the gift the Deed will be void and the Donor has to withdraw the gift.

2. Can you gift a future property?

One cannot form a Gift Deed if the property that is considered is a future property.

If the property to be gifted isn’t registered in the name of the Donor then the Donor is not entitled to part with the property as a gift. One way to illustrate this with an example is, a Donor investing on a home or Apartment still in construction cannot be transferred in name to a Donee since it doesn’t yet belong to the Donor.

3. When can a Gift Deed be suspended or revoked?

A Gift Deed in practice cannot be revoked if it has been registered. If not, since the Deed does not hold any value in a court of law, it can be revoked and the Donor can claim the gift back. Otherwise, a Gift Deed can only be revoked only in the event where the Donee refuses to accept the gift, or if the Gift Deed is formed by Coercion or Undue Influence as specified in the Indian Contract Act, 1872. Sometimes a gift can be revoked if it is mentioned as a part of the clauses of the Gift Deed, where the Donor and Donee consent to the revocation of the Gift Deed, when a certain, specified event (which is to be mentioned in the Gift Deed)  occurs.

Prepare Your Own Gift Deed At LegalDesk.com

We, at LegalDesk, offer you one of the most convenient ways of creating a vast variety of legal documents and deeds, in a procedure that is customizable, user-friendly, cost-effective, all at the same time. There is now little reason or cause for you to hunt for a lawyer to create your documents or make frequent trips to Registrar Offices as we also engage in delivery services.

If you should start creating your Gift Deed now, there is a fair chance that it will land on your doorstep within the next 2-3 days, and if opted within 48 hours. So why wait, start customizing your Gift Deed by clicking on the button below.