Legal Question in Real Estate Law in India

Hello,

My wife and I live abroad in the US, and we have a property in Bangalore in our joint name. We are in the process of selling it, and we have given the POA to my brother in India (the POA is from my wife and myself to my brother). The POA has already been stamped by the consulate in the US, and now needs to be adjudicated in Bangalore.

When my person went to get the POA adjudicated at the sub-registrars office, he was told that we would have to pay stamp duty for the POA adjudication because the POA was from my wife to my brother also, which is not a blood relation. We were told that the stamp duty would be 6% of the "Govt Value", and that this stamp duty would be adjusted for during the time of final registration.

Then I spoke to my lawyer, who said that the stamp duty would be 3%, not 6%, as only my wife is giving POA to non-blood relation and I am giving to blood relation, and that the duty would be not on the Govt Value, but on the registration value, and this would be adjusted for during the final registration. My questions are:

1) Are we required to pay stamp duty for adjudication of the POA?

2) If yes, what is the right stamp duty amount and is it on the govt. value, or the market/registration value?

3) Will the stamp duty I pay now, be adjusted for during final registraion of the property?

Greatly appreciate any help.

Sumit


Asked on 1/20/11, 1:02 am

1 Answer from Attorneys
Shrichand Nahar S.V.Nahar, Advocate

Consider cancelling the POA as prepared.

Instead consider a POA with express clause/s to the effect that all the consideration must be received by PoA holder by crossed account payee cheques/demand drafts in the name of the Owner only.

By this method, you may not be required to pay stamp duty.

Read more
Answered on 6/01/11, 9:58 pm


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