Poa and sale amount
Querist :
Anonymous
(Querist) 22 January 2024
This query is : Resolved
The DULY REGISTERED POA has been given to a brother with 5 sisters all living in Tamil Nadu to sell their house after the death of their father. Can the POA receive the entire payment from the purchaser to his Bank Account and then give it to his other siblings ? Or should the sale deed be drafted accordingly to make the purchaser to pay it directly to all the siblings individually. Will the
1 %TDS deducted by the purchaser borne by the POA if done by him alone ? What is the correct procedure and what is the tax liability involved on all of them ?
T. Kalaiselvan, Advocate
(Expert) 22 January 2024
The POA agent cannot receive the sale consideration on behalf of the principals unless and until he has been authorised to receive the same.
The TDS will be deducted by the buyer directly out of the sale consideration amount and the balance amount would be handed over as per the conditions of the sale deed and the power of attorney deed.
