Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
 
 
 
 
Popular Search: cpt :: TDS :: ARTICLES ON INPUT TAX CREDIT IN VAT :: list of goods taxed at 4% :: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARDS :: due date for vat payment :: form 3cd :: VAT RATES :: VAT Audit :: ACCOUNTING STANDARD :: TAX RATES - GOODS TAXABLE @ 4% :: articles on VAT and GST in India :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: empanelment
 
 
General »
 Why abolishing personal income tax may not be a good idea
 Questions about the GST cess
 How to prepare for the looming tax-extension deadline
 Income tax: Gratuity for employees raised to Rs 20 lakh; here is how you will benefit
 Haryana to set up scrutiny panel on GST benefits
 Waive certain taxes for companies in insolvency proceeding
 I-T department to appoint 7600 more tax return preparer scheme to cover entire country
 All eyes are on GST as Centre plans higher social pension
 Exporters demand total exemption from GST
 Here's what you must know to stay clear of taxman
 Filing income tax returns is not enough, you need to link Aadhaar with PAN before deadline ends

Clarify on reverse mortgage tax issues
May, 28th 2010

National Housing Bank (NHB) expects the finance ministry to clarify on the tax liability for banks that offer reverse mortgage loans (RMLs).

Under the new model of RML launched last year, banks will pay a lump-sum amount to a life insurance company, which in turn makes annuity-based payment to the borrower. The catch, however, is that the interest payable by the borrower is treated as accrued interest and liable to income tax in the hands of the bank.

This liability on income not yet received is proving to be a dampener for banks to aggressively market RMLs. The RML is a financial product which helps senior citizen/borrower to receive a monthly income akin to pension by monetising their homes. The amount received by the senior citizen/borrower is to be paid back after his death.

There is growing acceptability of RMLs but we are seeking more clarity on the tax-related issues. The proposed Direct Tax Code(DTC) is also silent on this issue, a senior NHB official told Media on the sidelines of a one-day interaction on RMLs.

As per data from NHB, close to 7,029 senior citizens have availed off RMLs of Rs 1,408 crore till March 2010. Besides the tax issue, bankers are also seeking clarity on providing RMLs against inherited properties and rented premises.

Till date, most of the RMLs are on self-acquired properties. Banks want clarity on the title in case of inherited properties. The house is the only underlying asset which is a security and we do not want to be a party in case of litigation between relatives. Similarly, we do not want a situation where the tenant refuses to vacate the house once the RML course through, an official with Punjab National Bank told Media.

As of date, there is only one life insurance company Star Union Dai-ichi Life Insurance, which tied up with a bank Central Bank of India for offering the new RML model. We have signed with 12 customers from places like Guwahati and Chennai. We are looking at tying up with Indian Overseas Bank and Syndicate Bank, said Star Union Dai-ichi Life Insurance managing director and CEO K Sahay.

Till last year, before the RML involving insurance companies was introduced, banks were involved in direct lending to borrowers.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
SEO Company Search Engine Optimization Company US SEO Local SEO Company Website SEO Company Alabama SEO Company Alaska SEO Company Arizona SEO Company Arkansas SEO Company California SEO Company Colorado SEO Company Connecticut SEO Company Delawa

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions