Income Tax - Benefit of reverse mortgage scheme is that even if the property is mortgaged the person still can reside in that property. Section 10(43) - Any amount received as a loan , either in lump sum or in installment in a transaction of reverse mortgage is exempt from tax i.e. not be treated as income of the senior citizen although loan is a cap...
Read MoreIncome Tax - Reverse mortgage as its name implies is the reverse of a traditional mortgage such as home loan. In case of traditional mortgage, lump sum amount is borrowed to purchase or refinance home, then we pay it back in monthly instalments. However, reverse mortgage is just an opposite, lender pays you. ...
Read MoreIncome Tax - The Finance Minister, in paragraph 89 of his speech, while presenting the Union Budget, 2007-08, had announced that the National Housing Bank (NHB) will introduce a reverse mortgage scheme for senior citizens. In pursuance of this announcement, some of the banks have already formulated scheme for reverse mortgage....
Read MoreNotification No. 79/2013 - Income Tax - (07/10/2013) - Notification No. 79/2013 - Income Tax 5. Disbursement of loan. - The approved lending institution may disburse the loan, - (a) to the reverse mortgagor by any one or more of the following modes, namely:- (i) periodic payments to be decided mutually between the approved lending institution an...
Read MoreNotification No.93/2008-Income Tax - (30/09/2008) - NOTIFICATION NO. 93/2008, DATED 30-9-2008 Reverse Mortgage means mortgage of a capital asset by an eligible pcrscn against a loan obtained by him fiom an approved lending institution; reverse mortgagor means the eligible person who has mortgaged the capital asset for the purpose of obtaining loan; ...
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Notification No. 79/2013 - Income Tax - (07/10/2013) -
Notification No.93/2008-Income Tax - (30/09/2008) -