Skip to main content

Executing a power of attorney

Some conditions relating to making a valid POA

According to the Power of Attorney Act 1882, a power of attorney (POA) includes any instrument (not chargeable with a fee under a law relating to court fees) empowering a specified person to act for and in the name of the person executing it. A POA grants authority to a person to perform certain acts on behalf of another person. It means a person is authorising another person to do something on his behalf.

The person for whom such an act is performed or is represented is called the principal. The person who is executing the POA is called the executant and the person to whom power is granted is called general power of attorney (GPA) holder or beneficiary.

There are two kinds of POA. One is the GPA. It gives wide powers to an agent to act on behalf of the principal as detailed in the deed. It is not confined to any specific act relating to a specific subject. The second is a specific power of attorney (SPA). This is given in respect of a single specified transaction like selling of a particular property. Once the particular act is completed, the SPA gets naturally revoked.

A POA creates a special power of agency that entitles the holder to use the principal's name in the transaction entered into. Registration of this document is not compulsory. In case it is to be registered it should be presented at the sub-registrar's office with jurisdiction over the property referred to in the document. Attestation of a POA is not compulsory. However, in order to avoid any disputes, and to establish proof of genuineness it is advisable to get the document attested by two witnesses.

Notarising a POA is as good as its registration. It is presumed that every document purporting to be a POA, which has been executed before and authenticated by a notary public, is conclusive proof. Each page of the document notarised should bear the official stamp of the notary, disclosing his registration number, jurisdiction, and signature. Appropriate notary stamp has to be affixed.

Power of attorney attracts stamp duty, which varies from State to State. Article 41 of the Karnataka Stamp Act prescribes the stamp duties.

Stamp duty payable

If the POA is executed for the sole purpose of registration of documents in relation to a single transaction - Rs 100

For authorising a person to act in a single transaction - Rs 100

For authorising not more than five persons to act joint and severally in more than one transaction - Rs 100

For authorising more than five persons but not more than 10 persons to act jointly and severally in more than one transaction, or generally - Rs 200 In case given for consideration and authorising the attorney to sell property, the same duty as a conveyance for the market value, equal to the amount of the consideration

If given to a promoter or developer along with a joint venture agreement, for construction or development of property situated in Karnataka - Rs 1,000 In case given to a person other than the father, mother, wife/husband, son, daughter, brother, or sister in relation to the executant authorising the person to sell property in Karnataka - Rs 8 for every Rs 100 on the market value of the property. The duty paid on this instrument is adjustable towards the duty payable on the instrument of sale or transfer executed subsequently in favour of either the attorney holder or any other person In any other case - Rs 100 Any POA executed outside India needs authentication. It has to be executed in the presence of certain designated officers - notary public, a court, consul or vice consul, or a representative of the Central Government. These documents need to be stamped within three months from the date of receipt in India

Popular posts from this blog

Inflation Indexed National Savings Securities - Tax Treatment

Invest In Tax Saving Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Buy Gold Mutual Funds Call 0 94 8300 8300 (India)   Inflation Indexed Bond - Tax Treatment Tax treatment on interest and principal repayment would be as per the extant taxation provision. The quoting of Permanent Account Number (PAN) mandatory for investment amounting to `50,000 (Rupee fifty thousand) and more. However, following exemptions with regard to PAN requirement will apply: As per Income Tax Rule 114B, any person who does not have a PAN and who enters into any specified transaction shall make a declaration in Form No.60. As per Rule 114C, the requirement of PAN is not applicable to the person who has agriculture income and does not have any other income provided he makes a declaration in Form 61, non-residents as referred to in Section 2(30) of the Income Tax Act, and...

Change in Fund Manager for some of HSBC Mutual Fund Schemes

Buy Gold Mutual Funds Invest Mutual Funds Online Download Mutual Fund Application Forms Call 0 94 8300 8300 (India) However, this facility is only available to Unit holders who have been assigned a folio number by the AMC.   HSBC Mutual Fund has announced that the below mentioned schemes shall be managed by the new fund managers as stated in the table. The effective date will be July 02, 2012.   Amaresh Mishra 's will be Vice President and Assistant Fund Manager. Having done a Post graduate diploma in Business Management and Bachelor of Chemical Engineering, he has over seven years of experience in Equities and Sales.   Mr. Piyush Harlalka's designation shall be Vice President- Fixed Income. Qualified as a C.A., C.S. and holding M.B.A.( Finance degree), he has over six years of experience in Fund management and ...

How EEE and EET Tax affect Retirement Investments

  An important factor while choosing a financial product is its taxation , and for retirement savings, this is even more important as the sums involved are usually life-long savings. Here's a look at the current tax treatment of three major long-term retirement planning products, which are - Employees' Provident Fund (EPF), Public Provident Fund (PPF) and National Pension System (NPS). EPF The tax treatment is EEE, which means your money is exempt from taxes at the time of investment, accumulation and withdrawal. At the time of investment, the tax deduction is under the limit of section 80C of the Income-tax Act , which is currently Rs 1.5 lakh. Partial withdrawals are also tax-free if made after 5 years of continuous service. If withdrawals are made before 5 years of service, 10% tax will be deducted at source. Exceptions have also been provided for transfer of amount and conditions wherein the subscriber is unemployed for more than 2 months or the loss of job was beyond th...

Rs 14,000 Crore worth of tax free bonds coming soon from NHAI , PFC

  NHAI, PFC file prospectuses, coupon rate not yet decided MORE debt investment options have opened up for investors with AAA rated tax-free bonds worth over Rs 14,000 crore lined up. The National Highway Authority of India ( NHAI ) and Power Finance Corporation ( PFC ) are offering Rs 10,000 crore and Rs 4,033.13 crore worth of tax-free bonds, respectively, as per prospectuses filed with the Securities and Exchange Board of India (Sebi). Of a Rs 5,000 crore issue by PFC, Rs 966.87 crore has already been raised through private placement on September 28 and November 1. Tax-free bonds give investors tax-free return on any amount invested. In another kind of bonds, the long-term infrastructure bonds, investments up to Rs 20,000 are tax exempt, that is this cap amount can be deducted from the taxable income. Accordingly, the NHAI prospectus has clarified that only the amount of interest from -and not the actual investment on -its new bonds will be tax-free. "NHAI's publ...

Personal Finance: You can insure your wedding

But luck may not always be on your side. With the frequency of such attacks, as also other risks and unforeseen accidents growing, a wedding insurance is something you may want to look at if a marriage is being planned in the family. Event insurance plans like this is still in its nascent stages due to low awareness. And given the sacred nature of the ritual, nobody wants to discuss or think negative. But as wedding spends and risks grow, it makes sense to cover the potential monetary loss. The policy in those countries even covers the loss of the wedding ring, the wedding gown not reaching on time and even the expenses/loss due to late or non-appearance of the photographer which may mean staging the event once again for the photograph. In India, most insurance companies — including ICICI Lombard General Insurance, Oriental Insurance, Bajaj Allianz and National Insurance — offer wedding insurance. The policy is tailor made to individual requirements and needs. The sum insur...
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now