Power of attoney
ketan
(Querist) 19 June 2016
This query is : Resolved
i want to give power of attorney to partnership firm for sale of flat ,in partnership firm there are two partners= one
is my daughter and another is son in law.
whether that firm is included in the definition of close relative.
under bombay stamp act how much stamp duty i have to pay for power of attorney?
R.K Nanda
(Expert) 19 June 2016
Consult local Mumbai lawyer
Guest
(Expert) 19 June 2016
Sorry bit doubtful from Maharashtra Stamp Act and registration act point of view How much exact expenses will occur for stamp duty and registration fee when you give Power of attorney to Partnership firm because Partnership firm is other entity .
Privileged of paying less than 1000 Rs. (Random Round figure) for Gift Deed /Sale deed to close relative like daughter son is for individual , This benefit can not be given to other entity .
So to save stamp duty and registration fee you can do Gift Deed to daughter and expenses of stamp duty and registration fee will be less than 1000/-
At same time there is central law THE MAINTENANCE AND WELFARE OF
PARENTS AND SENIOR CITIZENS ACT,
2007 in this one imp section states I copy
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23(1) Where any senior citizen who, after the commencement of this Act, has
transferred by way of gift or otherwise, his property, subject to the condition
that the transferee shall provide the basic amenities and basic physical needs to the transferor and such transferee refuses or fails to provide such amenities and physical needs, the said transfer of property shall be deemed to have been made
by fraud or coercion or under influence and shall at the option of the transferor be declared void by the Tribunal.
(2) Where any senior citizen has a right to receive maintenance out of an estate
and such estate or part thereof is transferred, the right to receive maintenance may be enforced against the transferee if the transferee has notice of the right, or if the transfer is gratuitous; but not against the transferee for consideration and without notice of right.
(3) If any senior citizen is incapable of enforcing the rights under sub-sections
(1) and (2) action may be taken on his behalf by any of the organization referred to in Explanation to sub-section (1) of section 5.
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So while doing Gift Deed you keep clause in it that your daughter will maintain you then you are indirectly safe.
Well this is new trick its advantage
1) Title transfer to next generation
2) You save Stamp duty and registration fee for in family transaction of less than 1000 (Only Maharashra)
3) By keeping clause that daughter or children will maintain Senior citizen in Gift deed . Senior citizen is sure he will get maintenance.
4) If maintenance is not done by daughter or son by this 2007 act transaction can be revoked by Tribunal
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Now it came in my mind if daughter sells the flat to outsider whether above mentioned condition will be applicable . this will be question of law . Bit confused on it.
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Instead of giving POA present legal circumstances prefer that you give gift deed to your daughter with condition that she will maintain you financially and in other ways presently and in old age.
Guest
(Expert) 19 June 2016
Registration fee and stamp duty will be more as compared to things stated above.
Tomorrow (today website not working) check department of registration and stamp duty website and call their call center and ask for the stamp duty and registration for Power of attorney if you give to daughter , mostly I am sure it will be high as compared to solution which I gave above
Devajyoti Barman
(Expert) 20 June 2016
Any two major capable of entering into valid contract cna enter into partnership agreement .Being a close relative is no hindrance.
So the POA is to be executed in the name of firm, daughter and son in law.
Fees and stamp duty is fixed and nominal.
Guest
(Expert) 20 June 2016
I called their help line ---
If POA is given without consideration by father to daughter then 500 Rs. Stamp Duty and 500 Rs. Registration Fee
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If POA is given with consideration by father to daughter than
Stamp Duty
5% of market value or Ready reckoner whichever is more in Municipal Corporation Area
4 % of market value or Ready reckoner whichever is more in Semi Urban Area
3 % of market value or Ready reckoner whichever is more in Rural Area
Registration Fee
For all areas
1% of valuation (Max. 30,000 Rs charges for registration.)
