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Power of Attorney

The necessity to engage into contracts and agreements in regard to business and other activities has become a regular and vital element of daily life in the modern world, where trade and industry have assured big and long roles to play. As man's workload increased, it became increasingly important for him to rely on others to do his tasks. Because of the hurried activities of merchants and industrialists, executing a power of attorney for delegating his tasks has become difficult. Granting a Power of Attorney is a legal procedure that entails the creation of a document that delegates authority to another person to serve as your legal representative. To minimise the difficulty and expense of future legal processes, the principal should exercise caution when appointing an agent as attorney. 

A power of attorney is a legal instrument signed by one or more people granting someone else the ability to act on their behalf. The attorney of the party offering the power is the person who gives the authorization. The individual who receives the authority is referred to as the Power of Attorney holder. 

POA Format 一

A power of attorney is a legal instrument signed by one or more people that authorises another person to act on their behalf. The Powers of Attorney Act of 1888 governs power of attorney. The attorney of the party offering the power is the person who gives the authorization. The individual who receives the authority is referred to as the Power of Attorney holder. Normally, Powers-of-Attorney are not required to be registered. The Power of Attorney, on the other hand, must be registered if it generates an interest in any immovable property. A Power of Attorney can be authenticated before a Registrar or Sub-Registrar in the district or sub-district where the principal resides, or by a Notary Public or any Court, Judge, Magistrate, Indian Counsel, or via Counsel or a representative of the Central Government if it is executed outside of India.

Stamp Duty : POA 一

In case of a General Power of Attorney is given without consideration to a parent, mother, brother, sister, wife, husband, son, daughter, grandchild, granddaughter, or any other close relative, simply the registration stamp duty of Rs. 500/- is due. If a General Power of Attorney is given to someone who isn't a close relative and/or for a fee, stamp duty is calculated based on the market value of the property or the fee, whichever is larger. 

If the Power of Attorney is granted without consideration in the name of the parent, mother, brother, sister, wife, husband, son, daughter, grandchild or granddaughter, or a close relative, in addition to the stamp duty, there is a registration cost of Rs.100. In all other cases, a registration cost of Rs.10/- per Rs. 1000/- is due, with a minimum fee of Rs. 100/- and a maximum fee of Rs. 30,000/-, based on the market value of the property or consideration, whichever is larger.

The Special Power of Attorney is subject to a stamp duty of Rs. 100/-.

General POA versus Special POA 一

The executor of the Power of Attorney (Principal) enables the Power of Attorney holder to execute any type of activity in the framework of his immovable and moveable property in his name and on his behalf under a general Power of Attorney. The Principal permits someone to execute restricted tasks on his or her behalf or imparts limited privileges in a Special Power of Attorney. 

• General Power of Attorney
  A general power of attorney is a broad delegation of authority to an agent. On behalf of his principle, the agent has the authority to make medical choices, legal actions, financial or contractual deals, and property dealings. 

• Special Power of Attorney
  Power of attorney for certain purposes: It's a very limited mandate. Only specific/particular concerns or transactions for the principal are allowed to be handled by the agent. You may even create many POAs, each with a different agent. The agent's authority ends after the transaction is completed. 

To sum up 一

This dedicated law governing POA is Power of Attorney Act, 1882 and the primary goal of enacting this law is to make it simple for your authorised attorney to have access to your funds and, as a result, take care of your property. It is an instrument in which one person, known as the donor or principle, authorises another person, known as the donee or agent, to act on his behalf. It may be possible for two or more people to give 'Power Of Attorney' to one or more others simultaneously. The principal gives the agent legal authority, which can be broad or limited, and the agent can make all essential choices, such as financial, property-related, and other concerns, when the principal is unable to sign or in the case of the principal's illness or disability. A power of attorney is a document signed by the principal that grants authority to an agent. A power of attorney document should be easy to read and understand.

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