How to prepare power of attorney to sell a property in India?
Asked by: Mrs. Willa Fritsch DDS | Last update: November 8, 2025Score: 4.6/5 (26 votes)
Firstly, an attorney from India must draft the POA, and the NRI and two witnesses should sign this agreement. The notarization of the document should be done in the presence of a Notary Public. Further, it must be sent to the Indian Consulate for his/her signature.
How to make a power of attorney for selling property in India?
The first step in creating a POA for Sale of Property is to draft the document. The document should be drafted by the provisions of the Indian Registration Act, 1908, and the Powers of Attorney Act, 1882. The document should specify the powers granted to the attorney-in-fact and any limitations.
How do I send a power of attorney to India from the USA?
US citizens granting Power of Attorney (POA) for use in India must follow specific legal procedures to ensure its acceptance. The process involves drafting the POA, notarization in the US, attestation by the Indian consulate, and registering the document in India if required.
What are the rules for an NRI to sell property in India?
An NRI or OCI who has acquired immovable property in India in accordance with the foreign exchange laws in force at that time can sell such property to an Indian resident, provided: The transaction takes place through banking channels in India; and. Indian resident is not otherwise prohibited from such acquisition.
What is the special power of attorney for sale of property in India?
About this document
The attorney is given almost unlimited powers as a Special Power of Attorney to negotiate prices, accept earnest money and sales consideration, sign and execute conveyance documents and also to appear before Sub Registrar for registration as also to repudiate the sale if he so decides.
How to Sell Your Indian Property from Australia: A Step-by-Step Guide to Power of Attorney
Can NRI sell property in India through POA?
Can an NRI use Power of Attorney to sell property in India? Answer: Yes, an NRI can use Power of Attorney to sell property in India. The POA should clearly outline the authority granted to the appointed representative for property transactions.
Can a power of attorney sell property and keep money?
Someone who is designated as your agent in a power of attorney has a fiduciary duty to you. That means they cannot make financial decisions or take actions with your money or accounts that aren't in your best interest.
Can I sell property in India and bring money to USA?
NRIs are allowed to repatriate or bring their sale proceeds of property sold in India to the US. However, the limit to the amount brought from India is $1 million per calendar year, including all other capital account transactions.
How to avoid tax on property sale in India?
- Joint Ownership. ...
- Reducing Selling Expenses. ...
- Holding Period. ...
- Availing Indexation Benefit. ...
- Buying a New Property (Exemption under Sec 54) ...
- Buying a New Residential Property (Exemption under Sec 54F) ...
- Tax Loss Harvesting. ...
- Investing in Bonds (Exemption under Sec 54EC)
What happens when a US citizen sells property in India?
Selling a property in India while living in the US can have tax implications on the capital gains. You need to be aware of the following before you sell your property: The buyer of your property will deduct a certain percentage of the sale price and pay it to the Income Tax Department in India on your behalf.
Is US notary valid in India?
Yes, online notarization is legal and secure to use in India. All transactions through the Notarize platform undergo a dynamic, multi-factor authentication process.
How much does a Power of Attorney cost in India?
Power of Attorney /Special Power of Attorney : Rs. 1000/- per instrument plus Rs. 100/- for pasting fee.
Does POA need to be notarized in India?
Registration of the notarized Power of attorney in Indian laws is important but not mandatory in India.
Do I need a lawyer to sell my house in India?
Selling a home in India involves several legal intricacies that can easily overwhelm an unprepared homeowner. Given the complexity of property laws, the potential for disputes, and the significant financial transactions involved, having a legal expert on your side is crucial.
Can a power of attorney change ownership of property in India?
However, it is important to note that a POA itself does not transfer ownership, but gives authority to the agent to transfer ownership on behalf of the principal. The POA must be executed in writing, signed, and registered. The agent must act within the authority granted in the POA.
What is misuse of power of attorney in India?
Misuse of Power of Attorney (POA) occurs when the individual granted authority, known as the agent or attorney-in-fact, abuses their powers or acts contrary to the best interests of the person who granted them that authority, known as the principal.
How to avoid paying capital gains tax on sale of property?
- Offset your capital gains with capital losses. ...
- Use the IRS primary residence exclusion, if you qualify. ...
- If the home is a rental or investment property, use a 1031 exchange to roll the proceeds from the sale of that property into a like investment within 180 days.13.
How to avoid capital gains tax on inherited property in India?
Avoid Capital Gains Tax through Will Inheritance
There is no tax on property received through inheritance. By planning the transfer of property through a will, individuals can avoid immediate capital gains tax liabilities, as tax is only applicable upon the sale of the property.
What happens if you don't pay property tax India?
Legal actions and notices: Authorities send multiple notices to property owners who default on tax payments. If ignored, property owners may face legal actions, including court proceedings to recover the dues.
How to get power of attorney to sell property in India from USA?
- Step 1: Appointing an Attorney. ...
- Step 2: Drafting the Power of Attorney (POA) Document. ...
- Step 3: Notarization and Apostille. ...
- Step 4: Attestation by Indian Consulate/Embassy. ...
- Step 5: Legalization.
How much money can I transfer from the USA to India without taxes?
How to Transfer Money from the USA to India without Paying Taxes? There is no way to completely exempt tax on money transfers from the USA to India. According to American laws, you can remit a maximum of $14,000, after which gift taxes will be applicable.
How much tax do I pay when I sell my property in India?
In India, the Long Term Capital Gains (LTCG) tax rate on the profit earned from the sale of a property is 20%, which the seller is required to pay.
What three decisions cannot be made by a legal power of attorney?
- Write a will for them, nor can you edit their current will.
- Take money directly from their bank accounts.
- Make decisions after the person you are representing dies.
- Give away your role as agent in the power of attorney.
How to write a power of attorney letter for property?
- Identify the Principal and Agent: State both parties' full names, addresses, and contact information.
- Define the Scope of Authority: Specify what powers are granted and include limits if needed. ...
- Set the duration: Indicate the start and end dates or state whether the POA is durable.