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
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
