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Certain doubt with regard GPA transactions

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T.N.Reddy

M.Com

313 Points Posted on 28 September 2021

sir. My brother is in London. He has a property in India and would like to sale the same and he does not have any bank account in India. Now he says he will give the GPA to do this sale transaction and after I do this transaction I should take that sale proceeds in to my bank account and then I have to transfer to his overseas account. Is it correct or How can I go ahead about it, and I should not be troubled because of this entry from the Income Tax Department. Kindly enlighten me.

Replies (2)

Quick Summary

This discussion addresses the legality and practicalities of selling Indian property on behalf of a non-resident brother using a General Power of Attorney (GPA). While a GPA can be used to authorise someone to act, the actual sale of immovable property requires a registered conveyance deed. The advice suggests executing a power of attorney in your favour to sell the property using your signature and bank account, and reassures that the sale proceeds themselves are not taxable income. However, complications may arise regarding TDS deductions under your PAN and the buyer's obligations when transacting with a non-resident.

Rama chary Rachakonda

Master in Accounts & high court Advocate

7021 Points Posted on 28 September 2021

GPA is not valid for the sale/purchase of property. ... Transactions related to an immovable property can only be done by way of stamped and registered conveyance deed, as applicable under the respective State government Act.

veerendar singh

tax consultant

1829 Points Posted on 28 September 2021

Execute a power of attorney in your favour and then sell the property by using your signature and bank account.

dont worry about such huge deposit in your account. its not your income, you should not worry about tax implications as there is no tax implication.

things will get complicated if tds is deducted under your PAN. and also the buyer is ultimately transacting with a non resident. what would be his duties under s. 195?

I dont have knowledge in that field so i cant say.