When registering a Gift Deed, the stamp duty and registration charges can be paid by either the donor (the person giving the gift) or the donee (the person receiving the gift). There is no legal restriction that mandates only one party to bear the charges.
The key requirement is that all government charges are duly paid, and the payment reference number is correctly linked to the registered Gift Deed.
EXAMPLE FROM BANGALORE
In Bangalore, stamp duty and registration charges are paid online through the Kaveri Online Services portal. After making the payment, a transaction reference number is generated.
For example, in the payment receipt below, the payment reference number is CR0422003000297855. This same number is linked to the registered Gift Deed, as highlighted in the sample document.
The reference number CR0422003000297855 is linked to the registered Gift Deed
In this case, the donor paid the stamp duty and government charges. However, it is equally valid for the donee to make the payment.
KEY POINTS TO REMEMBER
- Either party (donor or donee) may pay the stamp duty and registration fees.
- The payment challan/reference number must always be mapped correctly to the registered Gift Deed.
- Without linking the reference number, the deed will not be considered fully valid in the registration system.
FAQS ON STAMP DUTY IN GIFT DEEDS
1. Can both the donor and donee share the stamp duty charges?
Yes. While typically either the donor or donee pays the entire amount, both parties may agree to share the cost. What matters is that the full stamp duty and registration fees are paid and correctly reflected in the challan.
2. Is stamp duty different for family members in Karnataka?
Yes. Karnataka offers concessional stamp duty rates when a Gift Deed is executed between specified family members such as parents, children, spouse, or siblings. For gifts to non-family members, standard stamp duty rates apply.
3. Is registration of a Gift Deed mandatory in Bangalore?
Yes. Registration of a Gift Deed is mandatory. An unregistered Gift Deed has no legal validity and cannot transfer ownership rights in the property.
4. What happens if the payment reference number is not linked?
When stamp duty is paid through Kaveri Online Services, the payment challan/reference number is automatically linked during registration at the Sub-Registrar’s Office. This is part of the internal process. However, it is advisable to verify that the challan number is visible on the registered Gift Deed to avoid future disputes.
5. Who usually pays the charges in practice?
In most cases, the donee (recipient) pays the stamp duty and registration charges, since they benefit from the property transfer. However, in family transactions, it is common for the donor (giver) to bear the charges, especially when parents gift property to their children.
NEED HELP REGISTERING A GIFT DEED IN BANGALORE?
At PGN Property, we provide end-to-end assistance for Gift Deed registration, from drafting the document to paying stamp duty and completing registration at the Sub-Registrar’s Office.
Contact us today on +91-9742479020 (WhatsApp available) or pgnproperties@gmail.com and let us make the process smooth and hassle-free for you.