Tax Ben­e­fits

Consumer Voice - - Bfsi / Reverse Mortgage Loans -

in­come tax or cap­i­tal gains tax. How­ever, as and when the prop­erty is dis­posed of, ei­ther by the bank or the bor­rower or the le­gal heirs, the nor­mal pro­vi­sions of cap­i­tal gains tax will ap­ply – that is, the owner or le­gal heirs shall be li­able to pay cap­i­tal gains tax as per the pro­vi­sions ap­pli­ca­ble to gen­eral sale of prop­erty. On the other hand, if the le­gal heirs de­cide not to sell the prop­erty but pay the outstanding dues fully, no tax im­pli­ca­tions will arise as re­demp­tion of the prop­erty does not amount to trans­fer.

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