Jayesh Dadia, Chartered Accountant
I am a senior citizen of 65 years. I own one residential house where I stay with my wife. A bank has approved reversed mortgage loan against the mortgage of my residential house. Let me know whether there is any capital gain or any other Income Tax implications?
A reversed mortgage loan enables a senior citizen to avail of periodical payment from a lender against the mortgage of his or her house while remaining the owner and occupying the house. The maximum loan amount available is ₹75 lakhs. Under this scheme, the loan amount will be disbursed by the lender on a regular monthly term as annuity. Under Section 47(xvi), the transfer of capital asset in a transaction of reversed mortgage under a notified scheme will not amount to transfer and therefore will not be subject to Capital Gain Tax. Thus, even if the transfer of asset is in favour of the lender as mortgage, there will be no Capital Gain Tax implication in your hand. The monthly amount which you receive as annuity or loan will also not be taxable in view of provision of Section 10(43) of the Income Tax Act. Thus, you have no tax implication.
I am an individual and a partner in ABC LLP. During the current financial year I have retired from the LLP and received ₹2 crore on retirement. My capital amount in the LLP was only ₹10 lakhs. What would be the tax implication in my hand on the surplus which I have received on retirement?
Denne historien er fra July 17, 2023-utgaven av Dalal Street Investment Journal.
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Denne historien er fra July 17, 2023-utgaven av Dalal Street Investment Journal.
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