How Much Stamp Paper Required for Power of Attorney?

The stamp duty for Power of Attorney (POA) in India depends on the type of POA and other factors. Let’s explore the stamp duty requirements for different scenarios:

General Power of Attorney (GPA):

• If the GPA is granted to a close relative (parent, sibling, spouse, child, grandchild, etc.) without any consideration:

  • Stamp duty: ₹500

  • Registration fee: ₹100

• If the GPA is granted to someone other than a close relative or involves any consideration:

  • Stamp duty: The value of stamp paper for power of attorney is

    calculated as 1% of the market value of the property involved in the GPA or the consideration amount (whichever is higher).

  • Registration fee: Calculated as ₹10 per ₹1,000 of the market value of the property or consideration amount (whichever is higher).

  • Minimum fee: ₹100

  • Maximum fee: ₹30,000

• Specific stamp duty and registration fees may vary by state.

Special Power of Attorney (SPA):

• The standard stamp duty for an SPA in India is ₹100, regardless of the relationship between the principal and the attorney or whether any consideration is involved.

• Registration: If the SPA involves transactions related to immovable property (land, buildings, etc.), it needs to be registered with the sub-registrar’s office where the property is located. Additional fees beyond the ₹100 stamp duty may apply.

• State variations: While ₹100 is the standard, some states might have slightly different rates or additional fees.

I hope you get an idea of the stamp duty on power of attorney for sale of property.

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What is a Power of Attorney ?

Power of Attorney (POA)/General Power of Attorney(GPA)/Specific Power Of Attorney(SPA): It is a legal document whereby the Principal or Executant appoints an agent or attorney to do and execute certain acts or deeds on his/her behalf. Principal (Executant): An Executant is a person who is executing the POA and is authorizing an agent to do something on his/her behalf. He/she should be careful while authorizing an agent and the power given to the Agent/Attorney. Agent (Attorney): The person to whom such powers are granted and the one who is authorized to act on the principal’s behalf is the Agent or the Attorney holder. Execution of Power of Attorney: Draft Document: Power of Attorney is taken very lightly but it has a grave impact. It should be drafted by legal experts clearly defining its scope and objectives. Proper and complete address of the property should be present along with the name of the Principal and Unique Identification of Attorney must be there. Original POA/SPA/GPA needs to be handed over to the Attorney. One important thing to note is that, In ONE POA/GPA/SPA, one principal can appoint only one attorney. When you decide to go ahead with the process, you might come across a few terms like Notarisation, Apostilling, Registration, Adjudication etc. Let’s see in detail what these terms mean. Notarisation: A Power of Attorney must be signed and executed before a certified notary officer in your city who shall also notarize it. Apostilling: A Power of Attorney must be apostilled for NRI in the USA. This step is not required for domestic POA. An apostilled copy is a certificate from the State officials verifying that the notarized copy of the power of attorney is valid. This is done by the Authentication Division in the State Department. Once the document is apostilled, there is no need to get it attested from the Indian Embassy.

• In many places in India, they would easily recognize the attestation by the Indian Embassy/Consulate and hence may ask for attested copy despite the document already being apostilled. Hence, to avoid any inconvenience, if you wish to have the apostilled document also attested by the Consulate, you may apply to the Consulate.
• The Consulate will attest the documents only after they have been first apostilled by the state authorities concerned in the US. Apostilling is done at the offices of the Secretary of State where the applicant resides. For details, please check the state government’s websites. For example, residents of California may check the website www.sos.ca.gov
• Attestation by the Indian Consulate is optional. You may do so as explained above. Once the POA is apostilled and/or attested by the Indian Consulate, it has to be registered in India.

Registration: POA has to be registered so that the Attorney can execute Buy/Sale of immovable property on behalf of Executant. It must then be Adjudicated by the District Registrar. Adjudication and Stamp Duty: Stamp Duty must be paid by the Attorney in the jurisdictional District Registrar’s office where the Property is located preferably. Stamp duty varies depending upon the relationship of Executant and the Agent. This process is called adjudication of POA as per the Indian Stamp Act. POA issued in the USA must be adjudicated by Attorney Holder to make it legally accepted POA in the Sub Registrar office. KEY Points to consider for POA:

• When it comes to the sale of property i.e power of attorney to sell real estate, POA should be given to blood relatives only. In all other cases blood relation is not required. In cases, where it cannot be given to blood relatives, it may attract higher stamp duty which will approximately be up to 5% of the prevailing guideline value/circle rate of property. We suggest consulting your legal advisor in such cases.
• For executing Rental Agreement, POA can only be notarized instead of getting it registered. Your legal expert would be able to guide you in such a scenario. Adjudication of POA is required only for Registration of POA of NRI.
• Special Power of Attorney is recommended for property related matters. Seller must hand over the Original POA/GPA to the current Buyer. When the current buyer sells the property in future, the new buyer will get original POA for his records.
• For POA for Home loan purposes, KYC (PAN Card, Indian Passport, Visa, Passport Size photo) of Principal must be notarized.
• Hire a legal expert for POA of Buy/Sale of property as its impact is huge.
• POA holds a high impact in any transaction. Your registration of sale deed could be postponed if POA is not properly executed and stamped. Invalid POA may cost you an additional trip from your hometown to the location of property for sale. If for any reason, the POA is found to be invalid post registration of sale deed, you have to once again execute a Rectification Deed.

Having a power of attorney for real estate management can be especially useful if you are unable to manage your affairs for any reason. It enables you to appoint someone you trust to take care of important decisions and transactions, such as banking, investments, property management and more. Therefore it is important to understand the full scope of what a power of attorney can do and how it works.

A power of attorney is an official document that allows someone who is capable to act on his/her own behalf and authorise another person to perform duties in your place. A POA's stamp duty is normally determined by the value of the asset covered by the document. Depending on whether the power of attorney is general or specialised, several stamp duty charges may apply.  I have recently checked the power of attorney stamp paper value in Karnataka. Scroll down to get the stamp duty charge.

How much stamp paper required for POA?

Check out how much stamp paper required for power of attorney:

• If a general power of attorney is granted without payment to a parent, sibling, spouse, child, son, daughter, grandchild, or other close relative, a registration fee of Rs. 500 will be charged. 

• The Special Power of Attorney stamp paper value is usually Rs. 100. 

Check out the below table to know the stamp duty fee of POA in Karnataka:

Document Description	Stamp Paper Value for Power of Attorney (Rupees)
For the registration of the acceptance of execution of one or more documents	100
Allowing one or more people to act in a single transaction	100
Enabling no more than 5 people to act in more than one transaction or in general	100
Approval of more than five, but no more than ten, people for multiple transactions or in general	200
When giving the attorney permission to sell any real estate for consideration or with interest	5% on the market value or consideration amount whatever is higher
When distributed to a promoter or developer	1% of the property's market value or consideration, whichever is greater. Maximum: 15 lakhs
When offered to people other than the executant's father, mother, wife or husband, sons, daughters, brothers, and sisters, authorising such person to sell immovable property in Karnataka state.	5% on the property’s market value
For any other case	200

It is better to seek legal advice for the applicable value in your state. I hope you got an idea of the power of attorney stamp paper value.

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