Friday, July 2, 2010

I want to get the value of my house with land by executing a Power of Attorney.?

The buyer is willing to pay guideline value of the property through bank draft. The property is in Chennai India. The sale deed will be made by the buyer when he sell the property to someone else. Do I have to pay long term capital gains tax now before the sale deed is executed.please advice. Thanks.

if you are receiving consideration and give Power of Attorney, you are not liable to tax immediately.

When the PoA is selling to the third party, that time you have to pay the tax as per the slab fixed at that time and for the value of sale he is making.

No. After getting payment, when you file your return at that time you have to pay income tax as per index table.

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