FILING RETURN NRI CASE OF POWER ATTORNEY TO SELL GIVEN TO MOTHER

TDS 185 views 4 replies

Narinder SIngh Sall

1 Points Joined October 2019

Dear Experts.

My mother is NRI with indian passport and me and my brothers sister have given her power of attorney to sell the land in Punjab. We dont want any share of the property and are fine with our mother receiving the sums of the sale of the land in Punjab. The CA on buyer side is saying the mother and all of us have to file returns - my question is if we have given everything to our mother why should we be filing a return which will require for us to have NRO accounts etc. Can our mother simply to file the return as we have agreed her to have all of our share of the land proceeds by giving her power of attorney to sell?

Thanks in advance

Replies (4)

Kapadia Pravin

17264 Points Joined December 2018

Let me explain you,

Under power of attorney your mother will do land transaction including Agreement signing on your behalf as you all are owners of the land.

Your mother will receive sale consideration on your behalf.

in agreement now it is mandatory to include PAN Nos of sellers that is owners.

The buyer will also deduct TDS @ 20% before paying land money into your bank accounts.

The gift part will be subsequent event happening after receipt of sale money.

Alternatively you may first gift land to your mother by executing gift deed and that way you owners will not face any more tax related issues.

For more you can mail me - pnkapadia @ gmail.com

CA Arun Tiwari

Partner

6665 Points Joined February 2018

As the Income is accruing to all brother and sister and as your mother’ s status is NRI then She is mandatorily required to file Return. And you all brother also because of all you have the income accruing although you are giving her Power of Attorney.

CA Arun Tiwari

Partner

6665 Points Joined February 2018

As the Income is accruing to all brother and sister and as your mother’ s status is NRI then She is mandatorily required to file Return. And you all brother also because all you have the income accruing although you are giving her Power of Attorney.

Kapadia Pravin

17264 Points Joined December 2018

NRI is not required to file Income tax return in India if he has no income arising in India. ...

Further, ITR filing is required by NRI if NRI has taxable income in India exceeding basic exemption limit of Rs. 2.5 lakhs during a financial year