Neutral impactCorporate Action
Holding a power of attorney doesn't make you the owner: Here's why ITAT deleted ₹29 lakh LTCG tax on son
Mint 1 hr ago·6 Sept 2026, 5:10 pm
A recent Income Tax Appellate Tribunal (ITAT) ruling has clarified a key distinction in property taxation. The tribunal deleted a capital gains tax liability of ₹29 lakh for a son who held a power of attorney (PoA) to sell his father's property. The court ruled that merely possessing the legal authority to act on behalf of the owner does not equate to ownership. Therefore, the tax liability rests with the actual owner, not the agent.
This decision is significant for investors and families involved in property transactions. It highlights that a PoA holder acts as a fiduciary agent and cannot be taxed on the profit from a sale. Investors should ensure that legal documentation clearly separates the roles of the owner and the agent to avoid unintended tax liabilities. The ruling reinforces the need for precise legal structuring in property dealings.
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- Category: Corporate Action.
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