Commencement it shall come into force on the first day of july,1882. Summary on section 54 exemption capital gain with case law. Transfer of property means an act by which a living person conveys property to one or more other living persons. Iii sale the relevant sections in the act are sections 54 to 57 of the transfer of property act, 1882. Sale is a transfer of ownership in exchange for a price paid. According to section 54 of transfer of property act 1882 sale is. Sale as a mode of transfer sections 54 to 57 of the.
Purchase of another residential property within 1 year before or 2 years after the transfer of the property sold andor. Transfer of property act 1882 section 54 judgments. Transfers of property to partnerships with related foreign partners and controlled transactions involving partnerships notice 201554 section 1. Section 100 of the transfer of property act, 1882henceforth referred as the act defines a charge.
It contains specific provisions regarding what constitutes a transfer and the conditions attached to it. The pdf version of the notesebook for property law is attached for free and easy download at the bottom of this thread. Exemption under section 54 can be claimed in respect of capital gains arising on transfer of a capital asset, being longterm residential house property. Analysis of section 53a of transfer of property act, 1882. Income tax section 54 of the income tax act provides exemption towards long term capital gain arising on sale of residential property. Such transfer, in the case of tangible immovable property of the value of one hundred rupees and upwards. Scope of the section this section deals with what may be the subject of transfer under the act. Sale is a transfer of ownership in exchange for a price paid or promised or part paid and partpromised. Where immoveable property of one person is by act of parties or operation of law made security for the payment of money to another. Section 53a of the transfer of property act, 1882 is to protect nondefaulting buyer of property. An act to amend the law relating to the transfer of property by act of parties preamble whereas it is expedient to define and amend certain parts of the law relating to the transfer of property by act of parties. Section 54iii defines sale as a transfer of ownership. Gift as under transfer of property act and mohemmedan law. An act to amend the law relating to the transfer of property by act of parties.
This section deals with the mode of transfer in the case of gifts. Whereas it is expedient to define and amend certain. Registration act with those of the transfer of property act. Section 5 of the act defines transfer of property as in the following sections transfer of property means an act by which a living person conveys property in present or in future, to one or more other living person, or to himself, and one or more other living persons, and to transfer property is to perform such act. Short title this act may be called the transfer of property act, 1882.
Extent it extends, in the first instance, to the whole of india except the territories which, immediately before the ist november, 19567,were comprised in part b states or in the states of. The transfer of property act, 1882 law firm in pakistan. Law of property act 1925 is up to date with all changes known to be in force on or before 12 december 2019. It provides separate provisions for the gift of immovable and movable properties. Section 54 of the act defines sale and specifies how a sale of. Transfer of property act section 53a and some relevant. It proceeds on the maxim, expression unius exclusion alterius in. Sale deed is the chief document that transfers the rights in a property from seller to buyer. Whereas it is expedient to define and amend certain parts of the law relating to the transferof property by act of parties.
Transfer of a property can be made in two ways, firstly by an act of parties and secondly by law. Sale is a transfer of ownership in exchange for a price paid or promised or partpaid and partpromised. Transfer of immovable property will take place by transferring it from one person to another. The government has amended section 17a of the registration act, 1908 in the year 2001 in such a manner that the documents containing contracts to transfer for consideration of any immovable property for the purpose of section 53a of the transfer of property act, 1882 shall be registered if they have been executed on or after the commencement of. After the transfer of property act, 1882 came into force, some thought that sections 54 and 59 which required registered documents were necessary for sale of immovable property or regarding mortgage respectively. And section, 54 paragraphs 2 and 3, 59, 107 and 123 shall be. Section 54 in the transfer of property act, 1882 indian kanoon. Chindambaram, the machinery installed by a tenant for running a cinema in the premises taken by him on lease for his own profit, was held to be movable property within the meaning of section 3 of transfer of property act, as. Sale of immovable property section 54 and 55 of transfer of property act 1882 duration. Sale how made such transfer, in the case of tangible immovable property of the value. Transfer of property act, 1882 part performance notes. Be it enacted by parliament in the fiftythird year of the republic of india as follows. Doc sale as a mode of transfer sections 54 to 57 of the.
Full text containing the act, transfer of property act, 1882, with all the sections, schedules, short title, enactment date, and footnotes. All about lease and gift under transfer of property act. The benefit of the contract mentioned in this rule shall be annexed to, and shall go with, the interest of the transferee as such. With regard to gifts of immovable property, sec 123 provides. Gift is the transfer of certain existing moveable or immoveable property made voluntarily and without consideration, by one person, called the donor, to another, called the donee, and accepted by or on behalf of the donee. Section 5 of the transfer of property act hereinafter called as topa defines transfer of property as in the following sections transfer of property means an act by which a living person conveys property, in present or in future, to one or more other living persons, or to himself or to himself and one or more other living persons and to transfer. Condition that transfer shall cease to have effect in case specified uncertain event happens or does not happen. Gift as under the transfer of property act and mohemmedan law.
Sec 123 of the transfer of property act makes a reference to delivery. Types of mortgage under section 58 of the transfer of. Transfer of property act 1882 section 54 sale defined. Sale, section 54 and 55 of transfer of property act,1882. To make the transfer valid it is very essential that the person should be competent to make a contract and it should not be forbidden by law. Exemption is allowable even if a share in new property is purchased when the act enables an assessee to get exemption from payment of tax in respect of purchase or construction of a residential house, purchase or construction of a portion of the house should also enable the. Under the act of parties, transfer of property act topa exists, which gives us further divisions that is whether the property is movable or immovable, transfer for movable property and immovable property.
In the case of tangible immovable property of a value less than one. Sale is a transfer of ownership in exchange for a price paid or promised. Transfer of property as between seller and buyer 18. Section 5, under chapter ii of the act, defines transfer of property as an act by which a living person conveys property, in present or in future, to one or more other living persons, or to himself and one or more other living. Analysis of provisions of section 53a of the transfer of property act, 1882 the transfer of property act, 1982 came into force on the 1st july, 1882.
Section 58a a mortgage is the transfer of an interest in specific immoveable property for the purpose of securing the payment of money advanced or to be advanced by way of loan, an existing or future debt, or the performance of an engagement which may give rise to a pecuniary liability. Under section 54 any long term capital gain, arising to an individual or huf, from the sale of a residential property whether selfoccupied or on rent shall be exempt to the extent such capital gains is invested in the. The transfer of property act 1882 is an indian legislation which regulates the transfer of property in india. Air2005ker298 above dispute, reference to the relevant statutory provisions will be necessary. Doc the transfer of property act 1882 naveen kumar. Transfer by act of parties, vested and contingent interest, election, clog on, right to foreclosure, mortgage, sale, charge, lease and gift. The bare text of section 6 of the transfer of property act, 1882 lays down what may be transferred under the act. When a person acquires or owns an immovable property, the law also give. Chapter 170 sale of goods arrangement of sections section part i preliminary i. Transfer of property act, 1882 bare acts law library. As amended by finance act, 2020 exemption under section 54 can be claimed in respect of capital gains arising on transfer of capital asset, being long term residential house property.
The transfer of property act, 1882 the transfer of. Thank you and wish you happy and fruitful studying. Subject to the provisions of section 12, on a transfer of property an interest therein may be created with the condition superadded that it shall cease to exist in case a specified uncertain event shall happen, or in case a. Transfer of property act, 1882, section 54, 55 sale deed sham transaction sale deed duly registered but neither possession delivered nor sale deed given to vendee vendees not present at the time of registration of sale deed held, sale was a sham transaction mere registration of sale deed cannot operate to pass title to the vendee or. Such transfer, in the case of tangible immovable property of the value of one hundred rupees and upwards, or in the case of a reversion or other intangible thing, can be made only by a registered instrument. Lis pendens is captured under section 52 of the transfer of property act, 1882 the act. Section 9 of the transfer of property act, 1882 provides that a transfer of property may be made without writing in every case in which writing is not expressly required by law. Provisions of section 53a of transfer of property act, 1882. Overview this notice announces that the department of the treasury treasury department and the internal revenue service irs intend to issue regulations under. Iv of 1882 17th february 1882 an act to amend the law relating to the transfer of property by act of parties. Sale how madesuch transfer, in the case of tangible immovable property of. The doctrine of lis pendens esstentially aims at i avoiding endless litigation, ii protecting either party to the litigation against the act of the other, iii avoiding abuse of legal process.
The transfer of property act, 1882 the transfer of property amendment act, 2002 4 of 1882 st31 december, 2002 3 of 2003 an act further to amend the transfer of property, act, 1882. Section of the transfer of property act read as follows. Where, on a transfer of property, an interest therein is created for the benefit of a person not in existence at the date of transfer, subject to a prior interest created by the same transfer, the interest created for the benefit of such. Sale as a mode of transfer sections 54 to 57 of the transfer of property act, 1882. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. Section 54 of the transfer of property act iv of 1982 defines sale as under. Revised legislation carried on this site may not be fully up to date. Law of property act 1925, section 54 is up to date with all changes known to be in force on or before 24 april 2020. All about sale and mortgage under transfer of property act, 1882. Under the current article, we would try to thoroughly understand the exemption available under section 54 of the income tax act. Transfers of property to partnerships with related foreign.
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