Legal Question in Real Estate Law in

Very very urgent...looking forward to a quick guidance

If i receive a General Power of attorney from my father for a property owned and registered in his name, can i sell the same and if yes, will i receive the payment on sale in my name?

Also, the buyer will be able to register the sale deed in his favour without any issues....right? I will have the right to sign on all documents related to this property as i hold the Power of Attorney including receiving payments against the sale of the property....correct?

Please find the format attached and kindly cross check if it meets my requirements.

Also, will i be liable for capital gain tax, after i sell this property. I saw in the income tax website sayig this:

Exemptions from Capital Gains

In case of Individuals and HUF, long-term capital gains are exempt if the sale proceeds are reinvested in certain assets.

Some examples:

A) Profits on sale of residential house is reinvested in a new residential house.

B) Long term capital gains are invested in notified bonds

These exemptions are subject to certain conditions and the reinvestment has to be made within the prescribed time.

you may check on this website: http://www.incometaxindia.gov.in/general/computation.asp#c2


Asked on 9/16/10, 9:00 am

3 Answers from Attorneys
Vishwa Arya Arya & Co.

Gentleman:

Please note that the power of attorney from father authorises you to do an act, (which is specified in PoA document) on behalf of your father. So if you have the authority to sell included in the PoA document you will be able to sell on behalf of your father. However, the sale proceed will be in the name of the father and not in your name. it will be your father who would be subject to capital gain as the capital gain is in the hands of principal and not the attorney. Your question shows the rush in the matter. In legal matters it is always good to clarify all the facts before taking the action.

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Answered on 9/16/10, 9:19 am
RAJIV GUPTA (Cell: +91 9811284735) [email protected]

the power of attorney needs to be registered and you may have to pay 90% of the stamp duty on it. it is better if you get the sale deed executed instead. even if you sell the property on attorney, the other legal heirs may seek injunction from the court concerned and through power of attorney, you cannot be authorized to pocket the consideration amount as the same has to be deposited in the account of the executant of attornney.

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Answered on 9/16/10, 10:14 am


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