It's not true at all. The stamp duty would be the same.
The only requirement is that the stamp duty should be registered.
Power of attorney for non-blood relation for property sale
Hi, I have a property in Rangareddy District, Hyderabad, Telangana that I am trying to sell. I am currently located in US and have a power of attorney on my cousin brother name (non blood relation). My question is during the registration process at Hyderabad do I have to pay extra registration or stamp duty if a non-blood relative is executing power of attorney. I have been told that I have to pay around 1% of the market or property value in that case. Is that true ?
Asked 6 years ago in Property Law
Religion: Hindu
15 Answers
In case of power of attorney executed in favour of family member it would attract stamp duty of only Rs 500 or so
2) if it is in favour of non blood relative it would have to be stamped as conveyance
3) local lawyer can guide you as to exact amount of stamp duty payable by you
Yes, 1% is extra charged in the Telegana state and its non adjustable in the sale deed cum GPA.
Yes in case of the POA to non blood relative extra registration fee has to be paid. It is true,
1. Unless and until the agency is coupled with interest like giving POA to a Developer to making joint venture in the property no gratuitous POA requires any extra stamp duty.
2. Since this man is your relative and the power is given to him only for representing you in the registration office at the time selling the property you will have to pay the normal stamp duty.
The said charges are less for blood relative and more for non blood relative in order to stop person to evade stamp duty and avoid fake transaction
The taxation is has nothing to do with the power of attorney to the Transfer of Property it is a requirement that this kind of power of attorney is to be issued only to the blood relative and this power of attorney can be challenged at any point of time
Dear client
You just have to pay the registration charges and stamp duty for registration of GPA in India.
And the registration charges and stamp duty will be the same as in other cases according to my knowledge. But there can be some amendment done by state govt. Regarding registration charges which I don't know about.
If the POA is in favor of a Non blood it is 1%.
1. POA given to a non blood relative does attract a higher rate of stamp duty and in some states also needs to be compulsorily registered [if there is a power to sell clause]
2. this is to prevent evasion of stamp duty
3. the illegal practice of transferring property by granting POA by the owner led to the introduction of this rule as the stamp duty on a POA was very nominal
4. thus people began to exploit this loophole and would transfer their property by giving the buyer a POA so that he could do all what an owner could do
5. however if full stamp duty is paid on such POA then you will get rebate on the actual agreement to be executed between you and your buyer
6. that means the buyer will not have to pay stamp duty on the agreement and the stamp duty already paid by you on the POA can be reimbursed to you by the buyer
Dear Client,
There is such rule that if land is registered through GPS holder who is non blood relative have to pay 1% extra stamp duty.
NO, Whoever told is absolutely false. POA can be execute in any ones`s favor. NO difference.
1. After the Supreme Court Judgement in connection with the case of Surya Electric ....Vs.................The State of Haryana, sale of property through POA executed in favour of non-blood related persons have been barred.
2. This has been done for stopping the evation of stamp duty while committing sale through POA. In Delhi area, no sale deed used to be registered and sale used to be conducted by notarising POA only to enable that the buyer (i.e. the POA holder) can sale it to a third party after years thus evading the stamp duty he was suposed to pay while buying the property.
3. However, in genuine cases where the owner of the property can establish that he can not come for siging the sale deed, POA executed in favour of a third person is allowed for which no extra amopunt iis required to be paid.
4. So, in your case, the Registrar is expected to accept the said POA exedcuted in favour of your cousin for selling your property on the ground that you stay abroad.
You have been wrongly informed about it.
You dont have to pay any stamp duty for selling your property.
The 1% of the sale consideration amount will be TDS by the buyer, who will deposit this TDS amount to government directly.
No this is not true. Power of attorney can be given to anybody who is competent to contract. The person is misleading you. Act accordingly.
Regards
