I have inherited land through partition after my father's death. My brother was acting as power agent(GPA) and signed a sale agreement on my behalf last year with a buyer. The buyer(developer) could not complete the payments as agreed on initial sale agreement and finally managed to pay the agreed amount a bit later.
Meanwhile, the guideline price of the land has gone up. I am happy for him to transfer the ownership through registered sale deed. Because of guideline price increase, he is requesting me to issus GPA in favour of him - to develop & sell etc.
With GPA, he would be able get appropriate approval and sell the land in blocks/plots to prospective buyers. I am sure this person (holding my GPA), would be required to sell the land at least at guideline prices/above. (This is many folds higher than what we agreed on Sales Agreement). Would GPA is responsible for whatever he gains from that stage onwards - in terms of capital gains?
My question is, when he is going to sell for four to five fold mor prices than at the time of SA, this is a significant amount than what I received. When such a sale is completed by GPA, whether I will be liable for overall sale/gain capital gain tax or GPA is liable for Capital Gains Tax?
I need this clarification before I sign/appoint him as GPA.
I would appreciate your help.