As an NRI, when you buy a property, you can give Power of Attorney (POA) to any trusted sources in India including your father, mother, brother, sister, in-laws, friends, and colleagues. The Stamp Duty for POA is just Rs. 500 (for buying a property)
When you sell a property, you have to give POA to your blood relative, the blood relative includes your father, mother, brother, sister, husband, and your children. In-law doesn’t comes under blood relative category, which means your father-in-law doesn’t come under blood relative category. The Stamp Duty for blood relative is Rs. 500 (for selling a property)
For non-blood relatives, You can give POA to your father-in-law but you have to pay 5% stamp duty at the time of POA adjudication. Stamp duty is based on the market value or selling price of the property, whichever is higher
For example: Your property value is Rs. 50 Lakh.
- The stamp Duty is 5%X50 lakh = 2,50,000
- POA Adjudication fee is paid on Khajane2 website
- Government charges are based on government guidance value or selling price, whichever is higher.
Below is a real example of a similar situation.
Husband and wife, jointly own a property in Bangalore. Both live in Canada and cannot travel to India to register the property.
Both husband and wife decided to give POA to father (father to husband and In-law to wife) so the husband is blood-related to father and wife is not blood-related. In such a situation, we need to pay 50% of government charges
My client was unwilling to pay 2.5% as Stamp Duty, hence we planned to execute the POA between wife and husband to avoid a hefty Stamp Duty.
The wife gave POA to her husband, We executed the POA in Canada, notarized it in Canada, and adjudicated the POA in India. We incurred the stamp duty of Rs. 200 (edit on 11th Nov 2024: Stamp duty revised to Rs. 500)
The husband traveled to India and sold the property using the below POA
We provide end-to-end assistance to execute POA for Blood and non-blood relatives. To opt for our service, please write to us pgnproperties@gmail.com or WhatsApp to +9 1-97424 79020.
Thank you for reading…