How to Make a Power of Attorney in India: Types, Stamp Duty and Registration

A power of attorney lets you authorise another person to act on your behalf in legal, financial or property matters. Knowing how to make a power of attorney in India correctly matters because an improperly stamped or unregistered PoA can be refused by banks, courts and registration offices precisely when you need it. This guide covers the types of PoA, drafting, stamp duty, registration and the special process for non-resident Indians, under the framework of the Powers of Attorney Act, 1882, the Registration Act, 1908 and state stamp laws.

Types of Power of Attorney

A General Power of Attorney (GPA) authorises the agent, called the attorney holder, to do a broad range of acts on your behalf, such as managing property, operating bank accounts, signing documents and representing you before authorities. A Special Power of Attorney (SPA) is limited to a specific act or transaction, such as registering one sale deed or appearing in one case, and ends when that act is completed. The person granting the power is the principal or executant. Choose the narrowest instrument that serves your purpose: an SPA exposes you to far less risk of misuse than a GPA.

Step 1: Draft the Document Carefully

The deed should identify the principal and the attorney holder with full names, addresses and identity document numbers, state the powers granted in clear and specific terms, mention the duration or the event on which the power ends, and state whether the power is revocable. Vague omnibus language invites both misuse and rejection. If the PoA concerns immovable property, describe the property precisely. Have the document vetted by a lawyer for the state where it will be used, since stamp duty and registration practice vary across states.

Step 2: Pay the Correct Stamp Duty

Stamp duty on a power of attorney is a state subject, and the rates differ widely. Most states charge a modest fixed duty for an SPA and for a GPA given to close relatives without consideration, while a GPA relating to immovable property given to a non-relative or for consideration can attract duty linked to the market value of the property in several states. Check the schedule of the stamp law of the state where the PoA is executed or used, and pay duty through e-stamping or franking as locally applicable. An understamped document risks impounding and penalty when it is presented.

Step 3: Notarise or Register the PoA

For many routine purposes, execution before a notary public is sufficient. However, where the power of attorney authorises dealings with immovable property, particularly a power to sell, registration before the Sub-Registrar is the safer and frequently mandatory course, and sub-registrars in most states insist on a registered PoA before accepting a sale deed signed by an attorney holder. The principal must appear before the Sub-Registrar with photographs, identity proof and witnesses as required. Remember that a PoA is only an authorisation to act; it does not by itself transfer ownership of property to anyone, and buying property on the strength of a GPA alone does not confer title.

Power of Attorney by NRIs

A non-resident Indian can execute a PoA abroad by signing it before the Indian Embassy or Consulate, or before a notary public of the country of residence as accepted by Indian authorities. Some countries additionally require an apostille under the Hague Convention. After the document reaches India, it must be stamped under the relevant state stamp law before it can be acted upon, and registration requirements for property transactions apply just as they do to documents executed in India. NRIs commonly use an SPA to authorise a relative to complete a specific property registration, which keeps the authorisation narrow and time-bound.

Revocation and Safeguards

A revocable PoA can be cancelled by executing a deed of revocation and informing the attorney holder and the parties dealing with them; if the PoA was registered, register the revocation as well. A PoA generally lapses on the death of the principal. Keep the original safe, grant powers only to people you trust completely, and review long-standing PoAs periodically.

Two safeguards deserve special mention. First, include an express statement of consideration and relationship where the PoA is in favour of a family member, since this affects the stamp duty treatment in several states. Second, avoid granting a power to sell property except where genuinely necessary, and where you must, consider naming the specific transaction and a validity period. Banks, registration offices and courts scrutinise old, open-ended GPAs with suspicion, and a fresh, specific instrument almost always serves you better.

Key Takeaways

Use a Special Power of Attorney wherever possible, draft powers narrowly, and pay stamp duty under the law of the relevant state. Register the PoA with the Sub-Registrar when it relates to immovable property transactions. NRIs should execute the PoA before the Indian mission or a recognised notary abroad and have it stamped in India before use. A PoA authorises action on your behalf but never substitutes for a registered sale deed when ownership of property is to be transferred.