A Special Power of Attorney (SPOA) executed by a Non-Resident Indian (NRI) does not require registration in India. However, it must be validated and adjudicated for stamp duty at the District Registrar’s Office in the jurisdiction where the property is located.
WHY WE RECOMMEND SPOA OVER POA OR GPA
Before addressing the main question, let me share a real-life scenario that highlights why SPOA was the preferred choice in our client’s case.
One of our NRI clients, an Australian-based couple, jointly owned a flat in Bangalore. Due to professional obligations, they were unable to travel to India for the sale deed registration. Initially, they planned to execute a General Power of Attorney (GPA) in favour of their respective family members:
- The wife considered authorizing her father
- The husband considered authorizing his father-in-law
Here’s where stamp duty implications became a concern.
STAMP DUTY ON POA FOR NON-BLOOD RELATIVES
If the POA is granted to a non-blood relative, stamp duty is 5% of the property’s sale value or guidance value, whichever is higher.
Sale Price: Rs.54,00,000
Applicable Stamp Duty (50% of 5%): Only the wife’s POA to her father qualified as a blood-relative transfer. However, the husband's POA to his father-in-law attracted 2.5% stamp duty, which amounts to:
Rs.54,00,000 × 2.5% = Rs.1,35,000
To avoid this significant expense, we recommended using a Special Power of Attorney (SPOA).
SPOA STAMP DUTY
SPOA is adjudicated at a flat rate of Rs.500 per executant, regardless of whether the attorney is a blood relative or not.
PROCESS FOLLOWED BY OUR NRI CLIENT
The couple executed a Special Power of Attorney in Australia for the purpose of selling their Bangalore property. They couriered the following documents to us in India:
- SPOA (Attested by a Notary Public in Australia)
- Signed Absolute Sale Deed (Attestation by Notary/Embassy is not required)
- Self-attested copies of ID proofs (passport/Aadhaar)
We submitted these documents to the District Registrar’s Office for validation and stamp duty adjudication.
- Stamp Duty Paid: Rs.500 per executant
- Total Paid: ₹1,000 (for husband and wife)
Note: Prior to November 2024, the stamp duty was ₹200 per executant. The revised amount is ₹500. Refer to SPA Image below
OUTCOME
Using the SPOA, we successfully registered the sale deed in Bangalore. The SPOA reference was included in the registered sale deed as per standard protocol. We highlighted the same in image below
NEED NRI ASSISTANCE?
We specialize in assisting NRIs with property transactions in Bangalore. If you require support with SPOA adjudication, sale deed registration, write to us:
- Email: pgnproperties@gmail.com
- WhatsApp: +91-97424-79020