Power of Attorney – Karnataka Stamp Act, 1957 & Indian Stamp Act, 1899: A Comprehensive Legal Insight

A Power of Attorney (PoA) is a powerful legal instrument that allows one person (the principal or donor) to authorize another (the agent or attorney) to act on their behalf in legal, financial, or property-related matters. In India, the use, execution, and validation of Power of Attorney documents are governed by multiple laws — primarily the Indian Stamp Act, 1899 and the Karnataka Stamp Act, 1957 for the state of Karnataka.

This blog aims to provide clarity on how Power of Attorney is regulated under these statutes, especially focusing on stamp duty, registration requirements, and legal implications within Karnataka.

Understanding Power of Attorney

A Power of Attorney can be broadly categorized as:

• General Power of Attorney (GPA): Grants broad powers to the agent to act on behalf of the principal.

• Special Power of Attorney (SPA): Grants specific and limited powers for particular acts or transactions.

• Durable/Irrevocable PoA: Used in scenarios where the power remains effective even if the principal becomes incapacitated.

Governing Legal Framework

1. Indian Stamp Act, 1899

This central legislation governs the levying of stamp duty on various documents, including Power of Attorney, across India. However, states are empowered to modify these provisions through state amendments.

2. Karnataka Stamp Act, 1957

This is the key legislation in Karnataka that specifically determines the stamp duty payable on Power of Attorney instruments executed within the state.

Stamp Duty on Power of Attorney in Karnataka

The stamp duty on PoA in Karnataka depends on who is executing it and for what purpose. Here’s a breakdown:

✅ When executed in favor of family members:

If a Power of Attorney is given to a close relative (e.g., spouse, children, siblings, parents) without consideration and for managing property or financial matters:

• Stamp Duty: ₹500 (fixed)

• Registration Fee: ₹1000 (approximate)

• Applicable under: Article 41 (e) of the Karnataka Stamp Act

✅ When executed in favor of a non-family member or for consideration:

If the Power of Attorney is executed for the purpose of selling property or managing assets on behalf of the principal with consideration:

• Stamp Duty: May range up to 5% to 6% of the market value of the property (especially if it includes rights of sale)

• Applicable under: Article 41 (g) of the Karnataka Stamp Act

✅ Special Power of Attorney:

Used for attending court proceedings, collecting rents, or representing before authorities:

• Stamp Duty: ₹100 (fixed)

• Applicable under: Article 41 (a) or (b)

Registration of Power of Attorney in Karnataka

🏛 Is Registration Mandatory?

• As per the Registration Act, 1908, registration is mandatory if the PoA includes rights to sell immovable property.

• Notarization is sufficient for general or special PoA not involving the sale of immovable assets.

📍 Place of Registration:

• Power of Attorney must be registered at the Sub-Registrar Office in the jurisdiction where the property or principal resides.

🖊️ Execution by NRI:

• NRIs must execute the Power of Attorney in the presence of a notary or Indian Consulate abroad, followed by adjudication in Karnataka within 90 days.

Legal Validity and Precautions

• A PoA should be clear, specific, and unambiguous in its scope.

• Any act performed by the attorney outside the authorized powers can be challenged in court.

• Revocation of PoA should be made by registered deed and must be communicated to the attorney and third parties.

Conclusion

The Power of Attorney remains a vital legal document, especially for individuals unable to be physically present to manage legal or property matters. However, due diligence in drafting, stamping, and registering the PoA as per the Karnataka Stamp Act, 1957 and the Indian Stamp Act, 1899 is essential to ensure its legal enforceability.

If you're considering executing or receiving a Power of Attorney, consult with a qualified legal professional to ensure compliance with local laws and to avoid future disputes.

Need Expert Legal Assistance?

At Sairam Law Associates, we specialize in drafting, reviewing, and registering Power of Attorney documents tailored to your specific needs — whether for property transactions, NRI matters, or family delegations.

📞 Contact us today for personalized legal consultation and services.

Best Regards,Sairam Law AssociatesYour Trusted Legal Partner in Bengaluru📞 9611195911 | 9900984444📩 adv@sairamlawassociates.in🌐 https://SairamLawAssociates.in