Capital Gains on Sale of Reverse Mortgaged Property, Income Tax

[Rocky K]

This is query regarding Capital Gains on Sale of Reverse Mortgaged Property to settle the loan. The Reverse Mortgage connected with Insurance Company for annuity. And not simple Reverse Mortgage.

Will the interest be considered as an Expense when the property is sold to settle the loan for calculation of Capital Gains ? As after paying the hefty interest to the lender the borrower ultimately doesn't get much in hand.

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[DEV KUMAR KOTHARI]

Facts in details are required. about property: who acquired ? who created reverse mortgage? who is selling? What are allowable costs after cost inflation index?

Interest may not be allowed as expenditure at the time of sale of property against capital gains.