Legal Question in Real Estate Law in India

sale of shop by giving power of attorney

Sir, I want to sell my shop, but the buyer insists to make sale deed which he does not want to register. Instead he wants a power of attorney on his name by which he can sell it to another party in my absentia. Is there any harm of doing so? What will be the legal implementation and how I will show this money into my Income tax return.


Asked on 4/19/09, 11:23 pm

2 Answers from Attorneys

Shrichand Nahar S.V.Nahar, Advocate

Re: sale of shop by giving power of attorney

You can enter into Agreement to Sell with possession against full payment. Register this agreement alongwith power of attorney. This will take care of your income tax problem.

For other problems, have the agreement and power of attorney carefully drafted to safeguard and protect your interests.

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Answered on 4/20/09, 4:48 am
Sudershan Goel India Law Offices of Sudershan Goel - Advocate

Re: sale of shop by giving power of attorney

You may still show the money as 'receipt' against agreement for sale of property; even in the power of attorney, you may mention the 'consideration amount' as the reason for giving PoA.

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Answered on 4/21/09, 3:05 am


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