Gidt deed

Shanti

Gift made by relatives is not taxable. In your case, amount to be gifted by your mother to her children  is tax free.

Hence, you may made gift in  F.Y.2012-13 or in F.Y.2013-14 it would not affect  your mother tax liablity.

However,  when your mother sale property than there will be capital gain question.  So,  this point please take care .

Gift received from your mother will be tax free in all the children's hands. Gift given by your mother will also be tax free in her hands.

But the sum is paid after selling the property. And so that transaction will be subject to capital gain. Compute the capital gain and work out how much sum is to be invested either in another property or bonds. The balance can be gifted to the children.

Preparing a gift is not mandatory but it is very useful. It needs to be registered and a nominal stamp duty is also payable.

what would the registration amount be? 

Also where should the registration be done? the property being sold is at Karnataka. Can the gift deed be registered at Mumbai?

I think it will need to be registered at the place of property. Every state has a different stamp duty charges. So you can get it registered at Karnataka. I do not know how much would be the registration charges for a gift deed.