Transferring of title and rights with powers

P Goverdhan Reddy (Querist) 17 January 2020 This query is : Resolved
A is a AGPA holder having mentioned consideration for less amount at the time of Regn. Now market value gone up, hence, if he, executes sale deed, need to pay more income tax on present sale consideration. To avoid that, A, AGPA holder wants to execute Settlement Deed in favour of B, by relinquishing his rights and title in favour of B. and later, B wants to execute Regd Sale Deed in favour of C. Whether title and rights are being transferred through settlement deed in favour B or not, and being holder of Settlement Deed, can B will be having rights to execute Regd Sale deed in favour C. Please clarify.

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This discussion clarifies that a GPA holder cannot execute a settlement deed to transfer property rights, as a GPA is not a title document. The holder's authority is limited to what's specified in the GPA. Any attempt to transfer property outside these terms, such as through a settlement deed to avoid taxes, is legally invalid. Subsequent transfers based on such invalid deeds will also be void. It's recommended to consult a local lawyer for advice on property transactions and tax implications.

kavksatyanarayana (Expert) 17 January 2020
Your query requires some more information. However to me, to execute Gift deed, are A & B relatives? To execute the relinquishment deed, B and C are not joint owners of the property. so it is not possible.

P Goverdhan Reddy (Querist) 18 January 2020
AGPA holder wants to convey property to 3rd party. If he executes sale deed need to pay income tax. to avoid that, he wants to execute settlement deed in favour 3rd party ie.B. and further B wants to convert it into sale deed in favour of C. This can be done or not, if so, is it valid as per law.

SHIRISH PAWAR, 7738990900 (Expert) 18 January 2020
Dear sir,

GPA holder has to register the sale deed if he wants to sale the property to third person.

Regards,

Dr J C Vashista (Expert) 19 January 2020
Any settlement "out of family" is invalid and can not be registered.
Get sale deed executed and registered.
It is advisable to consult a local prudent lawyer with relevant records for better appreciation of facts, professional advise and necessary proceeding.

P. Venu (Expert) 19 January 2020
The facts posted suggest that you are seeking means to evade (not avoid) taxes. It is beyond the scope of this Forum to suggest any means to evade or violate the Law.

P Goverdhan Reddy (Querist) 19 January 2020
thanks a lot sir your advises and suggestion

Raj Kumar Makkad (Expert) 20 January 2020
I do endorse the wise advice of Ld. Vashishtha.

T. Kalaiselvan, Advocate (Expert) 26 January 2020
From your query it can be understood that the GPA holder would like to transfer the property by way of settlement or relinquishment deed ?
You may please note that the GPA deed is not a title document hence the GPA holder cannot acquire title to the property to transact with it in any manner other than what has been recited and imposed as condition in the GPA document.
The GPA holder is an agent or representative of the principal/landlord hence he cannot transfer the proeprty in any manner he may desire even for avoiding the taxes etc.
The transfer by a registered settlement deed has not been authorised in the GPA deed, then the power holder's duty is restricted to selling the property alone and to not to commit any other act out of the ambit of the GPA deed.
Therefore the beneficiary of the said settlement cannot acquire title to the proeprty transacted in the legally invalid manner and any subsequent transfer by the said beneficiary in favor another third person shall also stand invalid in law and the transferee cannot acquire title to the property.
You may discuss at length with a local advocate having a thorough knowledge on the subject before taking any step in haste out of anxiety.

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P Goverdhan Reddy (Querist) 26 January 2020
sir this is perfect reply

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