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March 2023

Conditional Gifts Vs. Senior Citizens Act

By Dr. Anup P. Shah, Chartered Accountant
Reading Time 17 mins

INTRODUCTION

A gift is a transfer of property, movable or immovable, made voluntarily and without any consideration from a donor to a donee. This feature, in the past, has examined whether a gift which has been made, can be taken back by the donor? In other words, can a gift be revoked? There have been several instances where parents have gifted their house to their children and then the children have either not taken care of their parents or ill-treated them. In such cases, the parents wonder whether they can take back the gift on grounds of ill-treatment? The position in this respect is not so simple and the law is clear on when a gift can be revoked. Recently, the Supreme Court faced an interesting issue of whether a gift made by a senior citizen can be revoked by having resort to the Maintenance and Welfare of Parents and Senior Citizens Act, 2007 (“Senior Citizens Act”)?

LAW ON GIFTS

The Transfer of Property Act, 1882 (‘the Act’) deals with gifts of property, both immovable and movable. Section122 of the Act defines a gift as the transfer of certain existing movable or immovable property made voluntarily and without consideration, by a donor, to a donee. The gift must be accepted by or on behalf of the donee during the lifetime of the donor and while he i

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