Under what circumstances he executed GPA?
Doesn't he have a family
GPA based transactions have to be dealt with caution.
Regards
G.Rajaganapathy
High Court of Madras
A GPA can gift the property to his child
Hello My friend (not related to me) executed a GPA for his property ( a house in Chennai) to me. This GPA gives me all powers including gifting it to anyone I choose. Can I Gift it to my wife or child ? In this case, my child pays the tax for the relative gift deed which is nominal. What is the tax percentage here? My friend can gift it to my wife/child but the tax is high. In this way, I save tax. Is it legally valid? If it is valid, then all the property buyers can also do this to save tax and not to be bothered by source of income. Note : My friend is Indian. I am an NRI (Two years completed). My wife/child are Europeans (Dutch). Thanks in advance.
Asked 4 years ago in Property Law
Religion: Hindu
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11 Answers
Is the GPA registered . GPA executed in favour of non family member has to be stamped as conveyance and attracts high stamp duty
on basis of GPA you can execute gift deed
3) gift deed in favour of family member does not attract tax
See if rights of gift are granted then in that case you can gift the property. The gifts your child receive will be taxed at the normal income tax slab rate as applicable
See the gift shall be treated as your friend to.your child you are just POA holder of.your friend.
No circumstances. My friend has a wife , a mom and a girl child. He is 50 years old. He is perfectly fine. He just wants to execute this GPA in my favour. I told you that this property is mine. Do we need a reason to execute a GPA? He simply wants to execute a GPA. In fact, I told you this is my property which I could not buy it in my name because I didnt have enough papers to get the loan. I paid the loan myself. My friend is very HEALTHY. I want to transfer this to my family. So I choose to go with this idea. It is all about savibnf the TAX. Can you get the idea? Otherwise I can simply ask my friends to GIFT or sell it to my family. Thanks...I hope I have clearly explained the idea of saving the TAX. Could you be specific to my question pl,ease? Regards
Asked 4 years ago
See your friend can himself without executing a POA can gift the property to your family i.e. wife or child.
See even if POA is there it would be treated as friend has gifted. So its better he personally gifts so that there is no future litigation and challanges to deed.
Your friend can execute will bequeathing property to you by will
2) will should be attested by 2 witnesses
3) registration of will is optional
4) even if your friend executes GPA in your favour it would attract high stamp duty
5) it is same as sale deed
6) instead of GPA route friend can execute gift deed in your favour
If the GPA deed contents authorise you to transfer the property by a registered gift deed too then you can proceed, but it should specify to who you can make the gift deed.
If there is no such recital in the GPA deed, then you may not be able to execute the desired gift deed.
If your friend wants to transfer this property by gift deed to your wife then he can do it himself, he need not execute the same through you, because the stamp duty for gift deed is one and the same whether he does it or you do it because of the fact that you are not the title holder and the intended act is done on his behalf and not by you as a title holder.
Moreover the stamp duty on a registered gift deed is same whether you execute it in favor of your close relative or an outsider, you perhaps have mistaken the registered settlement deed for gift deed.
Clarify.
However the fact and law is what that has been explained above.
Unfortunately you cannot save tax by this act of what you have intended to do by transferring the property by a gift deed as a power holder.
the same duty is applicable for the owner directly transferring the property by the gift deed or thorough his power agent.
If it is your property then why do you want GPA?
Remember that the GPA is not a title document to the power holder, it is just an authorisation to the power agent to do the acts on behalf of the principal
The said property can't ne transfered through gpa now se deed is mandatory as per SC judgement
Yes, but stamp duty will be same, no exemption. You POA holder and not owner. Hence, gift is not executed between blood relatives. You are acting on behalf of your friend.
Execute GIFT deed, this can be done by through GPA or by your friend. In both situation same stamp duty(tax) payable.
A General power of attorney if confers powers to gift to a particular person specified and the General Power of Attorney is registered only then General Power of Attorney holder can execute gift on behalf of owner.
In other words if name of doner is mentioned then power of attorney holder can execute the gift deed on behalf of the owner.
1. Yes a POA holder can gift the property to his wife or child.
2. tax liability and stamp duty will be calculated as your friend is transferring the property to your wife or son.
