The Hindu Business Line : Reverse mortgage

This refers to "Reverse Mortgage Scheme: Pressure on Ministry to finalise tax aspects" (Business Line, June 10). The financial institutions and banks have started working on a scheme for bringing out packages for implementation of the budgetary offer to senior citizens in the most befitting manner.

The government should really focus attention on analysing various tax aspects from the borrowers and the creditors' sides.

It is true that the property owner does not relinquish his right so as to attract tax burden as per the I-T Act but there could be other interpretations as to the income received by him during his life-time.

If it is treated as annuity in advance, it would attract a different consideration.

Above all, the Finance Ministry should conduct some more in-depth study before acceptance of the proposal by the banks so that the legal lacunae in respect of tax or subsequent transfer of property can be covered.

C. P. Velayudhan Nair

Kochi

Letters to the editor and contributions can be sent by e-mail to: bleditor@thehindu.co.in

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