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Section 17 - Direction for accumulation : Transfer of Property Act, 1882

 

 

What is Direction for accumulation? Section 17 of Transfer of Property Act, 1882

Section 17 of Transfer of Property Act 1882 : "Direction for accumulation"

17. (1) Where the terms of a transfer of property direct that the income arising from the property shall be accumulated either wholly or in part during a period longer than-

(a) the life of the transferor, or

(b) a period of eighteen years from the date of the transfer, such direction shall, save as hereinafter provided, be void to the extent to which the period during which the accumulation is directed exceeds the longer of the aforesaid periods, and at the end of such last-mentioned period the property and the income thereof shall be disposed of as if the period during which the accumulation has been directed to be made had elapsed.

(2) This section shall not affect any direction for accumulation for the purpose of-

(i) the payment of the debts of the transferor or any other person taking any interest under the transfer, or

(ii) the provision of portions for children or remoter issue of the transferor or of any other person taking any interest under the transfer, or

(iii) the preservation or maintenance of the property transferred, and such direction may be made accordingly.

 
 

TRANSFER OF PROPERTY ACT 1882

Section 2 - Repeal of Acts - Saving of certain enactments, incidents, rights, liabilities, etc

Section 3 - Interpretation clause

Section 4 - Enactments relating to contracts to be taken as part of Contract Act and supplemental to the Registration Act

CHAPTER II
OF TRANSFERS OF PROPERTY BY ACT OF PARTIES
A - Transfer of property, whether movable or immovable

Section 5 - Transfer of property defined

 

 

Section 6 - What may be transferred

Section 7 - Persons competent to transfer

Section 8 - Operation of transfer

Section 9 - Oral transfer

Section 10 - Condition restraining alienation

 

 

Section 11 - Restriction repugnant to interest created

Section 12 - Condition making interest determinable on insolvency or attempted alienation

Section 13 - Transfer for benefit of unborn person

Section 14 - Rule against perpetuity

Section 15 - Transfer to class some of whom come under sections 13 and 14

 

 

Section 16 - Transfer to take effect on failure of prior interest

Section 17 - Direction for accumulation

Section 18 - Transfer in perpetuity for benefit of public

Section 19 - Vested interest

Section 20 - When unborn person acquires vested interest on transfer for his benefit

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