Personal Finance
The transaction of mortgaging asset under such scheme shall not be regarded as transfer for the purpose of charging capital gains tax
Updated : Nov 08, 2018, 06:35 AM IST
As per the prevailing laws, a person whose residential status changes from Resident Indian to non-resident Indian is allowed to continue his PPF account till its maturity.
Though, the situation may change as the government in 2017 had issued a notification which provided that PPF account opened by a resident who subsequently turns to non-resident, shall deem to be closed from the date of change of residential status from resident to non-resident. However, the said notification has been temporarily suspended by the authorities vide notification dated 23 February 2018 till the other notification is issued.
Interest on PPF account shall remain exempt irrespective of the residential status.
The Income Tax Act provides benefit to the taxpayers who obtain a reverse mortgage loan. The transaction of mortgaging asset under such scheme shall not be regarded as transfer for the purpose of charging capital gains tax. Also, the sums received by the taxpayers as loan are exempt from the payment of tax. Thus, no tax implications arise while taking reverse mortgage loans.
Chirag Nangia, director, Nangia Advisories LLP
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