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Mortgage of property

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Querist : Anonymous

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Querist : Anonymous (Querist)
01 December 2014 if Mr.A mortgage the property to be bought with the banks for loan, the same he couldn't repay within the stipulated time frame subsequently the property was taken over by the bank authorities and sold. The amount than received by the bank in surplus of the loan outstanding was given back to Mr.A.
What are the Tax implication of the surplus amount received in Mr.A's Account?
how does the liability standing in the books of Mr.A loan written off?as well as the asset?
Any other points to be looked after?
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CA Kumar Mukesh

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CA Kumar Mukesh (Expert)
01 December 2014 The above transaction under the definition of transfer 2(47) and chargeable taxes under the head capital gain under section 45(1). However, full value consideration is limited upto amount received by assessee from bank.

Further, amount of interest can also be claimed as cost improvement as decided by Supreme court in various judgements
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Rupesh Jain

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Rupesh Jain (Expert)
01 December 2014 you have to pay the capital gain tax if excess the sale price over the indexation cost of property.
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