Reverse Mortgage Scheme 2008

It is not necessarily the legal heirs.  It is the nominee mentioned by such senior citizens in the reverse mortage application form itself.  The bank will pay the amount to the person whose name is mentioned in the form.  It is not necessarily the legal heirs. 

The bank will any way ask the assessee to nominate a person in this behalf and it is mandatory.  Also the assessee during his life time has every right to change the nominee name.

Even this is very delayed, hope this clears you..

Reverse mortage does not attract capital gain tax. It is regarded as not a trnsfer u/s 47 of the income tax act. And any amount received by senior citizen notified under reverse mortage then it will be not treated as income and will not be taxable......

What prem kumar said is partly correct.  The transaction is not regarded as transfer and does not attract capital gain.

But when the property is sold after the death of the senior citizen, the sale of property by the bank attracts capital gain.  In such a case the tax has to be paid by the bank.

But neither the senior citizen nor the purchaser (legal heir or any one as stated in my previous comment) suffers any capital gain tax.

Hope this adds value....