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How is property transfer through PoA taxed?

Purchased a property through power of attorney but haven't registered it? Here's what you should know.

How is property transfer through PoA taxed?

The property was bought under power of attorney and not registered subsequently. Please advise as to the tax implications. - Anonymous

Since you are purchasing a property, there are no immediate tax implications when it comes to payment of taxes. But, with regards to ownership as well as income generated from the property, there are a few tax implications that you should be aware of.

For tax purposes, registration is not necessary for you to be considered as the owner of the property. There are deeming provisions wherein you will be considered as owner of the property. One such case is part performance of the contract to transfer an immovable property. It is a situation where the contract for consideration has been signed either by you or someone else on your behalf, e.g., under a power of attorney, you have taken possession of the property, you have paid the consideration either in part or full and the terms of transfer is specified in the contract signed.

Hence in your case, if the conditions are satisfied, then you will be deemed to be the owner of the property and income from the property shall be taxable in your hands. If this is the only property you possess, then it can be considered as a self-occupied property. If you own multiple properties, then the properties other than the self-occupied one shall be deemed to be let and their annual value shall be calculated as per income tax provisions, and you will be taxed on such deemed income.

Suggested read:
What is the cost of acquisition for property purchased before 2001?
Tax implications on selling a house

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