If a property is given to a bank as a guarantee of loan and then on non repayment of loan the bank sells the property (house), and full sale value is adjusted against the loan amount and loan is still outstanding then is capital gains attracted in this case??
06 June 2009
at the point of time when the property is sold if Mr A is the owner , capital gain will be paid by Mr A . Irrespeactive of the date of bank guarantee.
06 June 2009
i also wanted to add one more point that guarantee was given for some other persons loan and not for himself.. means house is of Mr. A given to bank as a guarantee for loan of Mr. B... Please tell if the answer changes...
CAclubindia
