June 21, 2023: The Punjab Cabinet on June 20 decided to increase the stamp duty on power of attorney (PoA) created for the purpose of giving a person authority to sell a property. From a nominal fixed fee, the state has now hiked the stamp duty on registration to 2% of the transaction value if the power of attorney is given to a person other than a family member.
The new charges will not apply in cases where the PoA is executed for family members such as spouses, parents, siblings, etc.
Through a PoA, a person gives another person the legal right to present himself as his representative to perform specific tasks on his behalf. Special power of attorney is commonly used as a medium to buy and sell property in India. Registration of a PoA is mandatory if it is executed for the sale of a property.
So far, citizens in Punjab pay Rs 2,000 as stamp duty to register a general power of attorney when up to five people are involved, plus the Rs 400 registration fee. The stamp duty is Rs 4,000 to register a general power of attorney when more than five people are involved, plus the Rs 400 registration fee. The stamp duty is Rs 1,000 for registering a special power of attorney, plus Rs 100 registration fee.
See also: Is property sale through power of attorney legal?
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