Poa - sale deed
Querist :
Anonymous
(Querist) 23 September 2011
This query is : Resolved
I have a land which I wanted to sell. A real estate person approached and suggested that he would give full amount for land but instead of SALE DEED he would register as POA (Power of Attorney) to save registeration expenses. Later he will sell it to somebody with his profit.
1. Dear experts kindly suggest me if I can go ahead with this plan i.e., POA instead of a SALE DEED?
2. Would it create any problem for me later stage?
Sailesh Kumar Shah
(Expert) 23 September 2011
It is advisable to you that execute registered sale deed.If you are not doing so, it is theft of national money.
adv. rajeev ( rajoo )
(Expert) 23 September 2011
You can go for it, there is nothing wrong in it, but PoA holder sells it to any body by taking a money on behalf of you, the income will be treated as your income and you are liable to pay the income tax on that amount.And another very important fact to be kept in mind is that if POA holder cheats the purchaser for the act of POA you will be held responsible, so think twice before going for POA
Advocate M.Bhadra
(Expert) 23 September 2011
You can execute POA if you got the total money for the land before execute POA.Sell of property by a POA,it would be treated your income and your responsibilities.So.it is better to avoid POA.
R.Ramachandran
(Expert) 23 September 2011
When he would ultimately sell it under the authority of the POA, he would be selling on your behalf. Therefore, whatever higher amount that he receives will be accounted for in your hands and you would be liable to pay the long term capital gains tax if any!
Better beware.
If you do not want to get into any trouble, but a straight deal without any hanky panky, better tell him that since you are getting the entire amount, you will only execute a proper sale deed.
Guest
(Expert) 23 September 2011
go for sale deed for hussle free deal. otherwise other problems arise(especially in tamilnadu)
prabhakar singh
(Expert) 23 September 2011
A sale deed is a better option for you for several told and untold reasons,countless problem may crop up.
ajay sethi
(Expert) 23 September 2011
i agree with experts that sale deed is better option
Querist :
Anonymous
(Querist) 23 September 2011
I Thank you all experts.
ESTHERPRIYA
(Expert) 26 September 2011
No wrong in registering POA and getting a payment receipt for the transaction of selling. You can do that and every real estate persons and broker do follow this procedure.
