Tax Benefits

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.