The Hindu : Karnataka / Bangalore News : Parents also are now part of a ‘family’

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Saturday, Jun 13, 2009
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Karnataka

Karnataka - Bangalore

Parents also are now part of a ‘family’

Staff Reporter

BANGALORE: Parents will now stand to gain when they get property as a gift from their children. For, father and mother had been included in the definition of “family” in the gift deed transactions by the State Government which had fixed a uniform stamp duty of Rs. 1,000 and Rs. 500 as registration fee.

An amendment to Karnataka Stamp Act — the Ordinance was approved by the Governor on May 27 — had brought parents under the ‘family’, which will result in the reduced stamp duty and registration fee during property registrations.

Earlier, parents were not considered a part of family for gift deed transactions while children were a part of the family. While earlier, an offspring who got property from the parents had to pay only Rs. 500 for registration, it was not the case for a father/mother, who had to pay a registration fee of 1 per cent of the guidance value of the property even though a gift deed did not involve any cash transaction. The 2009-10 State Budget proposed the amendment bringing parents under the family definition and a uniform stamp duty was announced. But confusion remained over the 1 per cent registration fee of the guidance value to be paid by the parents as Article 28 of the Act had not been amended to give effect to the announcement.

Resolved

“The confusion over the payment of registration fee of 1 per cent of the guidance value had been rectified through a notification and parents are now a part of the widened family definition,” Inspector-General of Registration and Commissioner of Stamps & Registration K.R. Niranjan told The Hindu.

Earlier, the definition of a ‘family’ involved husband, wife, son, daughter, daughter-in-law, brothers, sisters and grandchildren. Gift deed transaction amongst them would attract just Rs 1,000 as stamp duty irrespective of the property value. In fact, the Government in 2007 had added siblings to the definition of family for gift deed transactions.

No information

However, though the notification giving effect to the changes in the definition of family was issued on May 27, some sub-registrars claimed ignorance about such a change.

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