Capital gain
sembaianathan.k
(Querist) 11 January 2013
This query is : Resolved
Dear Sir/Madam,
Can the money received by giving general power of attorney for a family property instead of executing a sale deed to a third party be used to open a capital gain account in order to avoid capital gain tax .Please guide me.
Thanks in advance
Nadeem Qureshi
(Expert) 12 January 2013
you should wait for another expert
Anirudh
(Expert) 12 January 2013
When you have received the money, why do you want to give only GPA instead of executing a Sale Deed?
Do you know that as and when the GPA really executed a sale deed, there the sale consideration will be much higher than what you now got? And that difference will also be taxed in your hands - because the GPA is selling/executing the sale deed on your behalf?
If that be so, what is the great fun in giving GPA instead of executing Sale Deed?
Advocate Ramesh
(Expert) 12 January 2013
GPA, means you only given power for maintaining, getting loan and even to sell the property etc like that. So the title is with you only. Then why you can pay capital gain. Unless the title is transferred to other the capital gain will come
Raj Kumar Makkad
(Expert) 14 January 2013
It is better to get the sale-deed executed immediately on receipt of consideration amount instead of providing GPA otherwise capital tax liability shall increase in future.
