Tax implications on transfer of assets through general power of attorney
Sachin Pandey (Article Assistant) (70 Points)
23 June 2014Sachin Pandey (Article Assistant) (70 Points)
23 June 2014
Mihir
(Wealth Manager)
(5293 Points)
Replied 24 June 2014
POA is not a transfer document. The owner must have appointed someone to find a buyer of the asset and finalise the deal by giving him POA. The owner shall be deemed to have been sold the asset to the buyer when the POA, his agent, signs the agreement of sale with the buyer. So capital gain shall arise when the sale agreement is executed and not when POA is signed.