Capital Gains

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This query is : Resolved

Nikita Khandelwal (Querist)

06 June 2009 Sir/Madam,

If a property is given to a bank as a guarantee of loan and then on non repayment of loan the bank sells the property (house), and full sale value is adjusted against the loan amount and loan is still outstanding then is capital gains attracted in this case??

Kindly answer soon...

Ca Anand Dubey

Ca Anand Dubey (Expert)

06 June 2009 yes

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

06 June 2009 If the bank guarantee to the loan is created by the person after he became the owner of the property , Capital gains attracts .

Late CA Sampat Jain

Late CA Sampat Jain (Expert)

06 June 2009 at the point of time when the property is sold if Mr A is the owner , capital gain will be paid by Mr A . Irrespeactive of the date of bank guarantee.

Nikita Khandelwal

Nikita Khandelwal (Querist)

06 June 2009 Thanx for solving the query sirs

Nikita Khandelwal

Nikita Khandelwal (Querist)

06 June 2009 i also wanted to add one more point that guarantee was given for some other persons loan and not for himself..
means house is of Mr. A given to bank as a guarantee for loan of Mr. B...
Please tell if the answer changes...

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