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Medlegal | Get Started

General Power of Attorney

A legal document which gives the person (agent) the power to act for another person (the principal) is known as Power of Attorney.

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A legal document which gives the person (agent) the power to act for another person (the principal) is known as Power of Attorney. The authority of an agent has the limited authority or legal authority to make the decisions for the principal's property, his/her medical care or finances. A power of attorney is generally used in the event of an illness or disability of the principal, or when the principal cannot be present to sign necessary legal documents for financial transactions.

A Power of Attorney (POA) is a crucial document listing the powers that a person wants to share with the POA holder. It is primarily used by Non-Resident Indians to manage or direct their property by authorizing another person known as the agent to act in their absence on their behalf.

The purpose of having a POA simplifies decision making in the absence of the valid owner, thereby minimizing security concerns. Moreover, POA is an essential part of property planning. It is convenient to have the other person to action on behalf of the principal in the development of business and transactions.

PROCEDURE TO REGISTER POWER OF ATTORNEY

  • Write down the POA terms on a Legal Paper
  • Visit the Sub-registrar of your resident jurisdiction
  • Office of registrar would need two witnesses to sign the POA in front of the registrar (Physical presence is required)
  • Carry all the original proof documents like voter ID card, address proof, passport, Aadhar card, etc. along with their photocopies
  • All photocopies should be notarized or attested by a gazetted officer (First class government officer)
  • Registrar saves and stores a picture of you, POA holder and the witnesses in the government records
  • One copy of the POA will be kept in government records by the registrar, and one copy will be provided to you with his registry stamp. At such times, your simple POA becomes ‘Registered Power of Attorney’

PAYMENT OF STAMP DUTY

  • The stamp duty for a POA can be paid as per section 48 of Schedule I of Indian Stamp Act
  • Non- payment of the Stamp Duty can result in the following outcomes:
    • The POA cannot be allowed as evidence before any authority that can admit the evidence.
    • Moreover, an unstamped POA can be allowed in evidence after the penal stamp duty of ten times the value of the original amount is paid

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