Article 41(e) of the Karnataka Stamp Act, 1957 – Power of Attorney & Property Transactions Explained
- Thota Devaraju
- 5 days ago
- 3 min read
The Power of Attorney (PoA) is a vital legal document widely used across India, especially in property and financial transactions. In Karnataka, the stamp duty applicable to a PoA is governed by the Karnataka Stamp Act, 1957, and Article 41(e) plays a significant role when the PoA involves the power to sell immovable property.
This blog provides a professional overview of Article 41(e), its legal scope, and its practical application for individuals executing or receiving Power of Attorney in Karnataka.
What is Article 41 of the Karnataka Stamp Act?
Article 41 of the Karnataka Stamp Act, 1957 prescribes stamp duty rates applicable to various types of Power of Attorney instruments. Sub-clause (e) specifically addresses cases where the PoA authorizes the sale of immovable property.
Understanding Article 41(e) – Key Provisions
Article 41(e): When a Power of Attorney is given for consideration and authorizes the attorney to sell any immovable property, the instrument attracts stamp duty equivalent to a conveyance deed under Article 20, calculated on the market value of the property.
💡 In simple terms:
If a PoA gives someone (not a close family member) the right to sell property, and there is consideration (i.e., value or money involved), then:
It is treated like a sale transaction for stamp duty purposes.
Stamp duty is levied as per Article 20, which is 5%–6% of the property's market value in most cases.
Exception: Concessional Duty for Family Members
Karnataka provides a stamp duty concession when the PoA is executed:
Without consideration, and
In favor of a close family member (such as spouse, children, siblings, parents), and
Solely for the management or sale of property on behalf of the principal.
✅ Applicable Stamp Duty in such cases:
Fixed Stamp Duty: ₹500
Registration Charges: Approximately ₹1000
Total Cost: Nominal, compared to regular conveyance duty.
This concession encourages intra-family transfers of authority without financial burden.
Practical Scenarios Under Article 41(e)
🧾 Scenario 1: PoA with Consideration
Mr. Arun gives Power of Attorney to his friend to sell his land for a commission.
Stamp Duty Payable: Equivalent to a sale deed (approx. ₹1.5–₹3 lakhs, depending on market value).
👨👩👧👦 Scenario 2: PoA to Family Without Consideration
Mrs. Shalini gives Power of Attorney to her son to sell her flat while she is abroad.
Stamp Duty Payable: ₹500
Because: It is in favor of a family member and without monetary consideration.
Legal Requirements & Best Practices
A PoA involving sale of immovable property must be registered at the Sub-Registrar Office.
If executed abroad (e.g., by NRIs), it must be notarized at the Indian Consulate and adjudicated in Karnataka within 90 days.
Always ensure that the terms of the PoA are clear and specific to avoid misuse or future disputes.
Conclusion
Article 41(e) of the Karnataka Stamp Act, 1957 is a critical provision that governs how Power of Attorney documents involving sale rights are treated for stamp duty purposes. While it imposes full stamp duty when there is consideration, it also provides meaningful relief for transactions involving close family members executed without consideration.
Whether you're planning to authorize a relative, friend, or representative to handle your property matters, it is essential to understand the legal and financial implications under Article 41(e) before executing a Power of Attorney.
Need Legal Guidance on Power of Attorney?
At Sairam Law Associates, we assist clients across Bengaluru and Karnataka in drafting, verifying, and registering Power of Attorney documents — ensuring full legal compliance and protection.
📞 Contact us today for a personalized consultation.
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