Disclosed herein is stable powder hair dye compositions with improved fragrance and colour deposition for colouring keratin fibers comprising of (i) Primary intermediates and couplers , (ii) Powder oxidizing component, (iii) Powder anionic surfactant, (iv) Cellulose gum, (v) Hydroxy acids,(vi) Filler or diluent material,(vi) Silicon elastomer blended with silicon dioxide and (vii) encapsulated volatile organic compounds. The invention further discloses a method for preparation of stable powder hair dye compositions.