Deed of Relinquishment
Aj Mann
(Querist) 04 March 2011
This query is : Resolved
My father died in 2007 with no will. Thus, his land in Punjab has fallen to my mother, my sister and me.
Me and my sister have granted a power of attorney to my mother (duly attested by Indian High Comission in UK) so that she may sell teh land on our behlaf. Do we need to enter into a deed of relinquishment also? If so, does this need to be attested by Indian High Commission also?
I hoped that by providing a power of attorney my mother would be able to enter into a deed of relinquishment on our behalf in India. Either way, I will need somebody to draft it for me as i have no knowledge of this document. Please advise.
adv. rajeev ( rajoo )
(Expert) 04 March 2011
It is not necessary to execute the rights relinquish deed. PA is more than sufficient. On behalf of you she can sell your share in the properties.
Devajyoti Barman
(Expert) 04 March 2011
Yes, once you validly execute a POA you need no more document to empower your mother to sell your share of property.
Aj Mann
(Querist) 04 March 2011
Thank you all. The plan is to transfer the land to our mother's sole name just in case the sale doesn't go through during this visit to India. That way she will be able to deal with it all herself the next time she goes to India.
Is there any tax to pay on this kind of family transfer? Or is it deemed a tax free gift?
A V Vishal
(Expert) 04 March 2011
Is there any tax to pay on this kind of family transfer? Or is it deemed a tax free gift?
There is no income/gift tax applicable however, you will end up paying stamp duty as applicable in the state of Punjab where the property is situate at the prescribed rate for either gift/relinquishment.
Aj Mann
(Querist) 04 March 2011
Would it therefore be better to not transfer the land and just use the power of attorney's at the point of sale? That way we will only have to pay stamp duty once, correct?
Uma parameswaran
(Expert) 05 March 2011
Power of Attorney needs to be attested from Embassy.
