land acquired through power of attorney

[satbir singhwahi]

land acquired through power of attorney, is sold through registered deed, whether this transaction is valid for calculating capital gain under income tax act.

[Ganeshan Kalyani]

Sir, transfer of title and receipt of consideration is the element to work out capital gain. The mode of transfer is not given in the Income Tax Act. Thanks

[satbir singhwahi]

Sir

Thks

But the IT dept says that you have acquired land though power of attorney and agreement , which is not right so benefit of LTCG be not given. Though we had possession and rental income was also declared for four years and then sold .

AI Summary

Transfer of title governs capital gains recognition; acquisition by power of attorney may be scrutinized for tax treatment. Recognition of capital gains depends on transfer of title and receipt of consideration; the Income Tax Act does not fix a particular mode of transfer. The taxpayer claims acquisition by power of attorney with possession and declared rental income before sale. The tax department contends the acquisition method (power of attorney and agreement) undermines entitlement to long term capital gains treatment.