Short answer: No
An NRI in Australia can give a Power of Attorney (POA) to both family and non-family members. However, the stamp duty implications differ significantly depending on who you appoint, especially when selling a property.
NRI BUYING PROPERTY IN INDIA
When purchasing property in India, an NRI can execute a POA in favour of any person, whether a family member or not.
- Family members include: father, mother, brother, sister, husband, wife, and children.
- Non-family members include: cousins, friends, colleagues, advocates, or brokers.
Stamp Duty for POA (Buying): Rs.500 per executant, irrespective of the relationship.
NRI SELLING PROPERTY IN INDIA
When selling property, you can still give POA to both family and non-family members, but the stamp duty changes drastically.
Stamp Duty Rates:
- Family member: Rs. 500 (irrespective of the property value)
- Non-family member: 5% of the sale price or guidance value (whichever is higher)
Example:
If you are selling a 3 BHK flat in Bangalore:
- Sale price: Rs.80,00,000
- Guidance value: Rs.55,00,000
For a family member POA: Stamp Duty is Rs.500
For a non-family member POA: Stamp Duty is Rs.80,00,000 × 5% = Rs.4,00,000 (payable during GPA adjudication in India)
RECOMMENDATION
To avoid hefty stamp duty, we recommend:
- Issuing POA to a family member whenever possible.
- If you must authorise a non-family member, consider giving a Special Power of Attorney (SPA) instead. The stamp duty for SPA is only Rs.500 per executant, even for selling property.
OUR ASSISTANCE
We provide end-to-end services for drafting and adjudicating POA or SPA for NRIs in Australia and other countries.
- Email: pgnproperties@gmail.com
- WhatsApp: +91-97424 79020