sale of shop by giving power of attorney
Sir, I want to sell my shop, but the buyer insists to make sale deed which he does not want to register. Instead he wants a power of attorney on his name by which he can sell it to another party in my absentia. Is there any harm of doing so? What will be the legal implementation and how I will show this money into my Income tax return.
Re: sale of shop by giving power of attorney
You can enter into Agreement to Sell with possession against full payment. Register this agreement alongwith power of attorney. This will take care of your income tax problem.
For other problems, have the agreement and power of attorney carefully drafted to safeguard and protect your interests.
Shrichand Nahar
S.V.Nahar, Advocate
Pune, 411004
Re: sale of shop by giving power of attorney
You may still show the money as ‘receipt’ against agreement for sale of property; even in the power of attorney, you may mention the ‘consideration amount’ as the reason for giving PoA.
Sudershan Goel
Attorney-at-Law (India)/ Visiting Scholar, UNC-CH USA
Sureme Court of India
New Delhi, 110001