Yes, an NRI can give a Power of Attorney (POA) to her father-in-law to sell her property in Bangalore. However, the applicable stamp duty depends on whether the attorney holder is considered a blood relative under the Karnataka Stamp Act.
Power of Attorney for Buying a Property
If you are an NRI purchasing a property in Karnataka, you can appoint any trusted person in India through a Power of Attorney, including:
- Father
- Mother
- Brother
- Sister
- Husband or Wife
- Father-in-law or Mother-in-law
- Friends
- Colleagues
- Other trusted relatives
For a POA executed only for purchasing a property, the stamp duty is Rs.500.
Power of Attorney for Selling a Property
When an NRI wants to sell a property, the stamp duty depends on the relationship between the property owner and the attorney holder.
If the Attorney Holder is a Blood Relative
The following persons are treated as blood relatives:
- Father
- Mother
- Brother
- Sister
- Husband or Wife
- Son
- Daughter
If the POA is given to any of the above persons, the stamp duty is only Rs.500.
Is a Father-in-Law Considered a Blood Relative?
No. A father-in-law is not considered a blood relative for the purpose of concessional stamp duty in Karnataka.
Therefore, although an NRI can legally appoint her father-in-law as the Power of Attorney holder, the concessional stamp duty of Rs.500 will not apply.
Instead, the POA will attract 5% stamp duty, calculated on the higher of:
- The Government Guidance Value, or
- The Proposed Sale Consideration.
Example
Suppose the property's market value is Rs.50,00,000.
The applicable stamp duty would be:
5% × Rs.50,00,000 = Rs.2,50,000
This stamp duty must be paid during POA adjudication through the Khajane-2 portal.
Note: The government calculates the duty based on the higher of the Guidance Value or the sale price.
Real Case Study
One of our clients, a husband and wife, jointly owned a property in Bangalore. Both were residing in Canada and were unable to travel to India for the sale registration.
Initially, they planned to execute a Power of Attorney in favour of the husband's father.
In this arrangement:
- The husband was appointing his own father, which qualified for concessional stamp duty.
- The wife was appointing her father-in-law, who is not a blood relative.
As a result, the wife's share attracted 5% stamp duty, which effectively meant paying 2.5% of the total property value because she owned a 50% share in the property.
The clients found this additional cost too high.
How We Helped Save Stamp Duty
To avoid paying the higher stamp duty, we suggested an alternative approach.
Instead of appointing her father-in-law, the wife executed the Power of Attorney in favour of her husband, who qualified for the concessional stamp duty.
The POA was:
- Executed in Canada
- Notarized in Canada
- Adjudicated in Karnataka
Only Rs.500 was paid as stamp duty for adjudication.
The husband later travelled to India and successfully completed the property sale using the registered Power of Attorney.
This approach resulted in substantial savings while remaining fully compliant
Conclusion
An NRI can appoint her father-in-law as a Power of Attorney holder to sell property in Bangalore, but since a father-in-law is not treated as a blood relative, the POA generally attracts 5% stamp duty based on the higher of the property's guidance value or sale consideration.
Before executing a POA, it is advisable to evaluate whether appointing a qualifying blood relative (where legally appropriate) can significantly reduce the stamp duty payable.
Need Assistance?
PGN Property provides end-to-end assistance for:
- Drafting Power of Attorney
- NRI POA execution
- POA adjudication
- Property registration
- Sale deed registration
Email: pgnproperties@gmail.com
WhatsApp: +91-97424-79020
Thank you for reading!