I’m executing an irrevocable General Power of Attorney (GPA) for a plot I purchased in 2021 in Bangalore,
and I’m receiving fair market value as consideration under the GPA. However, there is no registered sale deed executed yet—only the GPA.
How should this transaction be treated in my Income Tax Return (ITR)? Will it be considered a capital gain or treated differently under current tax laws?
Will not the sec 2(47) of the Income Tax apply here, and this transaction be treated as a capital gain? As per sec 2(47), under definitions
of 'transfer' other than a sale deed, other scenarios are also considered . sec 2(47) - https://shorturl.at/XoZca
Just to clarify- this GPA will be a registered GPA, registered in the sub-registrar office, and the GPA holder is paying 5% stamp duty to
register the GPA. (Note- Stamp duty for a sale deed is 6.5%, for GPA is 5%).
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