https://www.taxtmi.com/caselaws?id=796823 Capital gains tax applies where an assessee's mortgaged property is sold by a bank to discharge another person's loan and the entire sale proceeds are appropriated towards that secured liability. The owner retains ownership until sale and, by voluntarily creating an equitable mortgage, subjects the equity of redemption to sale upon default. Sale under an enforceable mortgage is treated like a voluntary sale for capital-gains computation. Capital gains are calculated on the full sale consideration under the indexed-cost framework, subject to admissible deductions; adjustment of proceeds against the loan does not change the consideration's character or eliminate the tax liability. en-us Thu, 09 Jul 2026 00:00:00 +0530 Tue, 11 Aug 2026 08:47:32 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=796823 Capital gains tax applies where an assessee's mortgaged property is sold by a bank to discharge another person's loan and the entire sale proceeds are appropriated towards that secured liability. The owner retains ownership until sale and, by voluntarily creating an equitable mortgage, subjects the equity of redemption to sale upon default. Sale under an enforceable mortgage is treated like a voluntary sale for capital-gains computation. Capital gains are calculated on the full sale consideration under the indexed-cost framework, subject to admissible deductions; adjustment of proceeds against the loan does not change the consideration's character or eliminate the tax liability. Case-Laws Income Tax Thu, 09 Jul 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=796823