Power of Attorney - Drafting and Stamp Duty

Power of Attorney is a legal document by which, a person who is himself competent to do certain acts, gives the authority to another person to perform such acts in his name and on his behalf. Power of Attorney is also known as kulmukhtyarpatra, mukhtyarpatra, mukhtyarnama, vatmukhtyar, aammukhtyarpatra etc. in India. In a Power of Attorney, the person giving authority/rights is called as 'Principal' and the person to whom authority is given is called 'Attorney Holder'. Power of Attorney can be classified as a General Power of Attorney or Special Power of Attorney.

General Power of Attorney

In a general Power of Attorney, the executor of Power of Attorney (Principal) authorizes the Power of Attorney holder to perform any nature of activity in the context of his immovable and

movable property in his name and on his behalf. If a General Power of Attorney given to father, mother, brother, sister, wife, husband, son, daughter, grandson, granddaughter or any near relative, without any consideration, then Stamp Duty of Rs. 500/- is only applicable for registration. In case, General Power of Attorney given to a person other than close relative and/or for consideration, then stamp duty is payable as per the market value of the property or the consideration, whichever is higher. In addition to the stamp duty, a registration fee of Rs.100 is applicable if the Power of Attorney given without consideration in the name of the father, mother, brother, sister, wife, husband, son, daughter, grandson or granddaughter or a near relative. In any other case, the registration fee is payable at the rate of Rs.10/- per Rs. 1000/- with a minimum of Rs. 100/- and a maximum fee of Rs. 30,000/- on the market value of property or consideration, whichever is higher.

Special Power of Attorney

In a Special Power of Attorney, the Principal authorizes someone to perform limited activities on his/her behalf or confers limited rights. Stamp Duty payable for Special Power of Attorney is Rs. 100/-.

Executing Special Power of Attorney

If the Principal is conferring Power of Attorney while staying in India: At the time of executing Power of Attorney, the Principal has to present himself along with the Power of Attorney before the Sub Registrar in whose jurisdiction he/she is residing and has to sign the Power of Attorney before that Sub Registrar and the concerned Sub Registrar authenticates it saying that the said party has signed in his presence. If the Principal conferring Power of Attorney is not staying India: At the time of executing Power of Attorney, the Principal signs the Power of Attorney in the presence of the Competent Authority of the country where he is residing which includes Public Notary/ Judicial Court/Judge/ Magistrate/Indian Counsel or Vice Counsel or Representative of Central Government and such Competent Authority gives authentication that the said party has signed before him.

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Frequently Asked Questions

Common questions about Power of Attorney Drafting & Stamp Duty Services India.

A Power of Attorney is a legal document through which a person (the Principal) authorizes another person (the Attorney Holder) to act on their behalf for specific purposes or activities. It allows the Attorney Holder to make decisions and carry out actions in the name of the Principal.

A General Power of Attorney grants broad authority to the Attorney Holder to handle various aspects of the Principal's affairs, including their movable and immovable properties. On the other hand, a Special Power of Attorney limits the Attorney Holder's authority to specific tasks or activities outlined in the document.

If the General Power of Attorney is given to a close relative without any consideration, the stamp duty is Rs. 500. However, if it is given to a non-relative or for consideration, the stamp duty is payable based on the market value of the property or the consideration, whichever is higher.

When the Principal is in India, they must present themselves along with the Power of Attorney before the Sub-Registrar in their jurisdiction. They must sign the document in the presence of the Sub-Registrar, who then authenticates it.

If the Principal is outside India, they must sign the Power of Attorney in the presence of a Competent Authority, such as a Public Notary, Judicial Court, Judge, Magistrate, or Indian Consul or Vice Consul. The Competent Authority then authenticates the document, confirming that the Principal signed it in their presence.

The stamp duty for a Special Power of Attorney is Rs. 100.

Yes, a Power of Attorney can be revoked by the Principal at any time. The revocation should be communicated to the Attorney Holder and any relevant parties or authorities involved.

The registration fees for a Power of Attorney vary depending on the type of Power of Attorney and whether it is given with or without consideration. The fees range from Rs. 100 to a maximum of Rs. 30,000, based on the market value of the property or consideration.

Yes, a Power of Attorney can be used for property transactions, such as buying, selling, or managing real estate properties. However, it is essential to ensure that the Power of Attorney explicitly grants the necessary authority for such transactions.

A Power of Attorney offers several benefits, including allowing the Principal to delegate decision-making and legal authority to a trusted person, ensuring their affairs are properly managed if they become incapacitated, and facilitating seamless operations or transactions in their absence.