Can a gift be re­voked or sus­pended?

A gift can be re­voked if the donee fails to ad­here to the con­di­tions laid down by the donor at the time of draw­ing up of the gift deed

HT Estates - - HTESTATES - Su­nil Tyagi

Agift is one of the many ways by which the ownership of an ex­ist­ing mov­able or im­move­able prop­erty can be trans­ferred vol­un­tar­ily and with­out any mone­tary con­sid­er­a­tion. The per­son who gifts the prop­erty is called the donor, and the per­son who re­ceives the gift is the donee. In or­der to con­sti­tute a valid gift, the gift must be ac­cepted by the donee.

Once a prop­erty has been gifted to the donee, the donor can­not sub­se­quently re­voke or can­cel the gift. A uni­lat­eral can­cel­la­tion of a valid gift is in­valid. How­ever, cer­tain grounds for re­vo­ca­tion of a gift are per­mit­ted in law. A gift may be sus­pended or re­voked on spec­i­fied grounds.

I f t here i s an agree­ment be­tween the donor and the donee at the time of draw­ing up the gift deed that in fu­ture is sus­pended or re­voked due to some rea­son, then the donor can law­fully re­voke the gift at that point in time. How­ever, such a spec­i­fied event should not de­pend upon the will of the donor. In other words, such an event should be be­yond the con­trol of the donor.

For ex­am­ple, ‘A’ de­cides to gift his prop­erty to ‘B’ on the con­di­tion that ‘B’ has to main­tain ‘A’ till the death of ‘A’. In this il­lus­tra­tion, the con­di­tion for re­vo­ca­tion is spec­i­fied right at the out­set and A’s power of re­vo­ca­tion is in clear and un­am­bigu­ous terms. ‘B’ has also agreed to the con­di­tion at the time of ac­cept­ing the gift.

In the event of ‘B’ fail­ing to main­tain ‘A’, ‘A’ may validly re­voke the gift and take back the gifted prop­erty from ‘B’ if the lat­ter fails to look after him, be­cause the gift deed pro­vided for the power of re­vo­ca­tion to ‘A’ and the gift has been made sub­ject to the spec­i­fied con­di­tion that ‘B’ has to main­tain the donor ‘A’.

A gift which is a vol­un­tary trans­fer of prop­erty can be re­voked by the donor if his con­sent has been ob­tained by fraud, un­due in­flu­ence, mis­rep­re­sen­ta­tion or co­er­cion. For exam- ple, ‘A’ who was the owner of agri­cul­tural land wanted t o av a i l a loan against his prop­erty.

His nephew ‘B’ con­vinced ‘A’ to ex­e­cute a power of at­tor­ney in his favour for the pur­pose of get­ting the l oan and com­plet­ing the re­quired for­mal­i­ties for it. ’ A’ was around 80 years old and agreed to do so. How­ever, ‘B’ under the pre­text of get­ting a power of at­tor­ney signed by him, got a gift deed in­stead. There­fore, ‘A’ re­voked the gift later as his con­sent was ob­tained by fraud.

Apart f rom t he g rounds men­tioned above, a valid gift once made is ir­rev­o­ca­ble and the trans­fer of a prop­erty by way of a gift is as com­plete and bind­ing on the par­ties as by any other form of trans­fer. erty (wher­ever sit­u­ated).

My brother booked a flat but be­fore he could com­plete the agree­ment for­mal­i­ties, he went to USA. I there­fore signed the agree­ment in my name, took a loan for his flat and even­tu­ally reg­is­tered the flat in my name as all bank doc­u­ments and agree­ments are in my name. I will have to trans­fer the house in the brother’s name some time in the fu­ture. If I reg­is­ter it again in his name, the ex­er­cise will at­tract huge reg­is­tra­tion charges. Is it pos­si­ble that I gift the flat to his three-yearold daugh­ter to avoid pay­ing reg­is­tra­tion charges?

— Sangeet Kapoor Even the gift doc­u­ment in your niece’s name will need to be stamped and reg­is­tered. Var­i­ous states have lower stamp duty rates for the gifts made to spe­cific rel­a­tives and you can take ad­van­tage of that. More­over, since she is mi­nor, the gift has to be ac­cepted by her guardian. In any case, the loan will need to be re­paid to the bank if you wish to gift the prop­erty. If the prop­erty is to be owned by a mi­nor, it will not be pos­si­ble for her or your brother to get a loan for it.

I have two prop­er­ties. One is self­oc­cu­pied and other is let-out. I have taken hous­ing loan to pur­chase the sec­ond prop­erty. I had the cal­cu­la­tion of my in­come tax after de­duc­tion of in­ter­est and prin­ci­pal amount under section 24 as loss from house prop­erty after tak­ing rent as in­come. My em­ployer re­fuses to give de­duc­tions on let-out prop­erty and is say­ing that de­duc­tion is ad­mis­si­ble on self-oc­cu­pied prop­erty. Please clar­ify whether my em­ployer is right or not?

— Ra­jiv Trikha In case the re­sult of in­come from house prop­erty is neg­a­tive, whether in re­spect of self-oc­cu­pied prop­erty or let out, the em­ployer has to take into ac­count such loss under the head ‘in­come from house prop­erty’ be­fore de­duct­ing tax at source from Salary as per Section 192(2B) of the In­come Tax Act, 1961 read with rule 26B. Just make sure that the state­ment of in­come sent to your em­ploy- er (tak­ing the loss under the head “in­come from house prop­erty” is ver­i­fied as fol­lows at the end.

Form of ver­i­fi­ca­tion I, …….(name of the as­s­esee ), do de­clare that what is stated above is true to the best of my in­for­ma­tion and be­lief.

Once you do this the em­ployer has no op­tion but to take the loss into ac­count while cal­cu­lat­ing the tax de­ducted from your salary. You can file an of­fi­cial griev­ance with your HR depart­ment if they refuse to fol­low the pro­vi­sions of the IT law.


A uni­lat­eral can­cel­la­tion of a valid gift is in­valid and only cer­tain grounds for re­vo­ca­tion of a gift are per­mit­ted under the law

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.