Stamp Duty on Power of Attorney in Pune: When is it ₹500, and When is it 7%?

One of the most common legal documents used in Pune’s real estate market is the Power of Attorney (PoA). Whether you are an NRI in Dubai managing a flat in Baner, or a senior citizen in Kothrud asking your son to handle a property sale, a PoA is the instrument that makes it possible.

However, there is a dangerous misconception that a Power of Attorney is always a “cheap” document, costing just ₹500 on stamp paper. This is not true.

In Maharashtra, the stamp duty on a PoA depends entirely on who you are giving the power to. If you choose the wrong person (non-near relatives), the government treats the PoA as a “Deemed Sale” and demands the full stamp duty (up 7% of the property value).

Here is a detailed breakdown of the rules for 2026.

1. The “Near Relative” Rule (₹500 Stamp Duty)

If you are giving a Power of Attorney to a close family member (near relatives) to buy, sell, manage, or transfer your property, the Maharashtra Government offers a massive concession.

Who qualifies as a “Near Relative”?

The government considers only the following relations to qualify for the concessional duty:

Father / Mother
Brother / Sister
Spouse (Husband / Wife)
Son / Daughter
Grandson / Granddaughter
Father-in-law / Mother-in-law
Brother-in-law / Sister-in-law

The Cost:

Stamp Duty: ₹500 (Fixed).
Registration Fees: ₹100 approx.

Crucial Note: Cousins, nephews, uncles, and “family friends” etc. do not fall under this category.

2. The “Non-Relative” (Full Stamp Duty)

This is where many property owners in Pune make a costly mistake.

If you grant a Power of Attorney to sell/transfer immovable property to anyone outside near relatives (e.g., a friend, a distant relative, a business partner, or a care-taker), the law views this transaction suspiciously.

The government presumes that you have essentially “sold” the property to this person by giving them the power to sell it. Therefore, it is treated as a Conveyance (Deemed Sale).

The Cost:

You must pay Stamp Duty on the Market Value of the property (Ready Reckoner Value), just like a regular Sale Deed.

Stamp Duty: Approx. 5% to 7% (depending on the location—Gram Panchayat, PMC, PCMC, or PMRDA limits).
Example: If your flat in Wakad is worth ₹80 Lakhs, and you give a PoA to your cousin to sell it, you will have to pay approximately ₹5.6 Lakhs in stamp duty immediately.

And, if you grant a Power of Attorney to anyone outside the near relatives to buy an immovable property, Stamp Duty will be Rs. 500/-.

3. PoA for Developers (Joint Development Agreements)

If you are a landowner in an area like Sadashiv Peth or Sahakar Nagar entering into a redevelopment agreement, you will be asked to sign a PoA in favor of the Builder/Developer.

This PoA is usually part of the Development Agreement (DA).
Since the developer is not a relative, this PoA attracts higher stamp duty (usually covered under the specific Article for Development Agreements, generally 5% or as per current JDA norms).
Warning: Never sign a “General Power of Attorney” for a builder separately without registering the Development Agreement first.

4. Is Registration Mandatory?

Yes and no.

If the Power of Attorney grants the power to buy, sell, transfer, or sign a sale deed for immovable property, it must be compulsorily registered at the Sub-Registrar’s office (Haveli offices in Pune).

Notarized PoA: A simple PoA on ₹500 stamp paper that is only “Notarized” (signed before a notary public) is valid for administrative tasks (rent agreements, paying taxes, attending society meetings).
Registered PoA: Required for selling or buying the property. The Sub-Registrar will reject any sale deed signed by a PoA holder if the original PoA is not registered.

5. Special Case: NRIs (Adjudication)

If you are an NRI executing a PoA from abroad:

You sign it before the Indian Consulate/Embassy in your country.
You send it to Pune.
Adjudication: Within 3 months of its arrival in India, it must be Stamped and presented to the Notary Public. .
The authority at the sub-registrar checks
- If the stamp is valid with nominal duty.
- If no, they will demand the full 7% duty before validating it.

Summary Checklist

Scenario	Relation to Owner	Stamp Duty in Pune
Case A (authority to sell)	Father, Mother, Spouse, Sibling, Child, Grandchild, In-laws	₹500
Case B (authority to sell)	Cousin, Nephew, Friend, Agent, Partner, etc	Up to 7% of Property Value
Case C (redevelopment)	Developer / Builder	As per Dev. Agreement (approx 5%)
Case D (authority to buy, rent, society matters, etc.)	Anyone	₹500

Before you draft a Power of Attorney, check the family tree. If the person representing you is not a “Near Relative”, you might be walking into a massive tax liability. Always draft the specific powers carefully to ensure the document is accepted by the Sub-Registrar when the final sale takes place.

Disclaimer: This article is for informational purposes only. Stamp duty rates in Maharashtra are subject to change during the annual budget. Always consult a legal professional for the exact calculation based on your specific property location.