• Stamp duty on sale of Bangalore apartment by POA holder

Hi 
 Me and my wife have a registered special power of attorney in my dad's name in UP to sell our flat. The flat is in Bangalore. We have found a seller and are trying to close the transaction by transferring the registration to the buyer. The BBMP registrar is asking the buyer to pay additional 5% stamp duty (on top of the existing 5%) because the power of attorney of my wife is not in her blood relatives name. Is that claim valid ? Is there a way around it? We cannot come down to Bangalore as we are traveling and we need ti close this transaction.

Need suggestions please.
Asked 7 years ago in Property Law
Religion: Hindu

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10 Answers

1. Well, registration fees or stamp duty varies in every state and there is no uniformity in such rate in all over India.

2. So you can take local lawyer to verify the authenticity in the demand made by the registrar.

3. Apparently no such clause exists as if the POA is not made within blood relations then it is not valid as per decision of the Supreme Court in Sooraj lamp case.

4. So I suggest you to engage a local lawyer to verify the demand of the Registrar.

Devajyoti Barman
Advocate, Kolkata
23653 Answers
537 Consultations

POA executed in favour of close relative attracts nominal stamp duty

2) if executed in favour of third party attracts higher stamp duty

3) option is for wife to execute POA in favour of her parents or siblings

Ajay Sethi
Advocate, Mumbai
99775 Answers
8145 Consultations

When POA given to person other than

the father, mother, wife or husband,

sons, daughters, brothers, sisters in

relation to the executant

authorising such person to sell

Transferable Development Rights

relating to immoveable property

situated in Karnataka State

The stamp value same as conveyance deed has to be paid so the demand is valid.

Your wife can give separate poa to her brother or other blood relative to execute the sale to save duty.

REFER article 41(EC) IN SCHECHUDLE OF KARNATKA STAMP DUTY ACT.

Shubham Jhajharia
Advocate, Ahmedabad
25513 Answers
179 Consultations

Your father is not your wife blood relative, he is her father in law and therefore in a case of transfer of immovable property, any GPA OR SPA must be in favour of blood relative to avoid stamp duty, in your case, SPA is given by your wife to her FIL, which attracts stamp duty of 5.6%.

The demand raised is therefore valid. Your wife must execute the SPA in favour of any of her other family member/s to avoid stamp duty.

Kiran N. Murthy
Advocate, Bangalore
1298 Answers
194 Consultations

Yes it is the rule that the power of attorney should be in the name of a blood relative

Vimlesh Prasad Mishra
Advocate, Lucknow
6851 Answers
23 Consultations

1. Actually the sale through PO holder has been ordered against by the Supreme Court in case of Surya Electrics ......Vs.....The State of Haryana in the year 2012 to stop sale of properties by issuing only POA with out registering the sale deed by paying the stamp duty.

2. No genuine sale through POA has been restrained.

3. In the instant case, she has executed the POA in favour of her father in law which should be accepted by the Registrar since she is incapable of coming to India for selling her share of the property.

4. However, she can execute a POA being notarised by the appropriate officer of the local a Indian consulate to avoid the impasse created by the Registrar.

5. Otherwise she shall have to file a Writ Petition before the High court agsint the Registrar which will be more cumbersome than executing a POA in favour of any of her blood relative to register the sale deed in connection with her share of the said property.

Krishna Kishore Ganguly
Advocate, Kolkata
27703 Answers
726 Consultations

If the Power of Attorney is registered and appropriate stamp duty paid during such registration, then such a claim should not arise.

You may through your PoA request the Registrar to provide you the relevant notification/ rule justifying such claim of additional 5% stamp duty or appoint a local lawyer to look into the matter.

Shekhar Banerjee
Advocate, Delhi
156 Answers
1 Consultation

Dear Client,

Registrar is idiot, POA even notorised is sufficient to act on behalf of principal anywhere in India.

Stamp duty will be paid on sale deed registration and copy of POA will enclosed with it.

Yogendra Singh Rajawat
Advocate, Jaipur
23079 Answers
31 Consultations

The law on stamp duty is a state subject and it may vary from one state to another.

If you have been notified by the registrar's office on this then you may have to pay the additional stamp duty, but why should BBMP demand this additional charges?

You may clarify from the local registrar's office through some of your own sources and confirm the same before venturing into the execution of sale deed..

T Kalaiselvan
Advocate, Vellore
89977 Answers
2492 Consultations

This is my response to you:

1. Since you and your wife have a common ownership of the property you will need two different POA;

2. You can make a POA for your share on behalf on your father;

3. Your wife can make a POA for her share in her family member's name;

4. That should simplify your transactions;

5. That ways you can avoid stamp duty.

Gowaal Padavi
Advocate, Mumbai
1919 Answers
5 Consultations

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