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Amit   16 March 2018

Power of attorney holder gifts property to relative

My father's real brother is having power of attorney of plot. He wants to gift me that plot. Question is: would i get income tax notice on gift tax if i acept gift from POA holder. Please example explain that do income tax law consider registered owner a donor or POA holder?


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 3 Replies

R.Ramachandran (Advocate)     16 March 2018

1. Clarify who gave him (your father's brother) the Power of Attorney?

2. Who is the owner of the plot?

3. The Power of Attorney was granted to him for what purpose?

4. When was the power of attorney given?

5. Whether the person who gave the Power of Attorney to your father's brother is alive now?

Amit   16 March 2018

1. He purchased the plot( u can say he just got POA to avoid Stamp duty) 2. Owner is my mother's real brother who lives in canada and he is residing there for long time. 3. It was sold not through registry but POA 4. POA was given 12 years back. 5. Yes he is alive. Now if my father' brother make a gift deed only mentioning that he is gifting me plot. Then shall i have to pay gift tax ? And shall i have to mention that owner is my mother's real brother? Or simply my father's brother's gift deed would do the work for exemption of gift tax?

R.Ramachandran (Advocate)     17 March 2018

IF he has tried to avoid paying stamp duty and therefore got only POA, then PLEASE NOTE, HE IS NOT THE LEGAL OWNER OF THE PROPERTY AT ALL.

HE HAS NO AUTHORITY TO GIFT THE PROPERTY.  EVEN IF HE GIVES, YOU CANNOT BE HAPPY FOR THE DOUBT OVER THE OWNERSHIP WILL ALWAYS BE THERE.

 


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