In Uttar Pradesh, now it will be essential to pay stamp duty for Power of Attorney ranging from 4 to 7 percent as per the rules. Before, if there were fewer than five people listed on the Power of Attorney, only a stamp duty of Rs.50 had to be paid. Though, this will not be the case anymore. There has been a change in the rules regarding the Power of Attorney for fixed properties like houses, land, etc., in Uttar Pradesh. In a conclusion taken during the cabinet meeting of the state government, it has been obvious that now, if someone wants to execute a Power of Attorney, they will have to pay stamp duty ranging from 4 to 7 percent, alike to property registrations.
However, family members have been excused from this, and they will have to pay Rs.5000 instead of the prescribed Rs.50. The government has engaged this decision to curb tax evasion.
Power of Attorney, also known as Mukhtarnama, is performed when the right to sell fixed property is given to an external person separate from the family. Although its registration is not compulsory, people often get it registered for the authenticity of the document, as there were instances of fraud in this regard. Property registration involves the transfer of property ownership, whereas Power of Attorney grants the right to handover the property, and this is being exploited to ease illegal purchases and sales of real estate.
This system is also appropriate in Maharashtra, Madhya Pradesh, and Bihar. In Delhi, a stamp duty of 3 percent is exciting for getting a Power of Attorney.
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