Skip to main content

House Renting Guide: Important Things to Check Before Finalizing a Rental Home

Post a Comment

Buying Property in a Minor’s Name: Is It Legal in India? Find Out

Many parents consider purchasing property in their child’s name to secure their future. However, there is often confusion about whether a minor can own property in India and what legal conditions apply. Can a minor buy property? What are the tax implications? Can parents sell the property later? This article answers all these questions in simple terms.

Can a Minor Own Property in India?

According to Indian law, a minor (anyone under 18 years of age) cannot enter into a contract, including property transactions. This means a minor cannot legally purchase property. However, parents or legal guardians can buy property in their minor child’s name and manage it until the child turns 18.

As per the Transfer of Property Act, 1882, while a minor cannot directly buy property, they can be gifted property. In such cases, the minor becomes the legal owner, but parents or guardians are responsible for managing it until the child reaches adulthood.

How Can Property Be Registered in a Minor’s Name?

If parents wish to buy property in their minor child’s name, they must follow these legal procedures:

  1. Purchase by Parents – Parents or guardians can buy property and register it in the child’s name.
  2. Gift Deed or Will – Property can be transferred through a gift deed or by mentioning the child as a beneficiary in a will.
  3. Management by Guardians – Since a minor cannot manage property, parents or legal guardians will handle it until the child turns 18.

Can a Minor Sell or Rent Out Property?

A minor cannot sell, rent, or mortgage property on their own. Since they are not legally allowed to sign contracts, their parents or legal guardians must handle such transactions on their behalf.

However, if parents wish to sell or mortgage the property before the child turns 18, they must seek permission from the court. The court ensures that the sale is in the minor’s best interest before granting approval.

Tax Implications on Property in a Minor’s Name

  • No Tax on Gifted Property – If a minor receives property as a gift, there is no tax liability on the minor.
  • Rental Income is Taxable – If the property generates rental income, that income is added to the parent’s income and taxed accordingly.
  • Limit on Property Ownership – A minor cannot own more than two properties in their name under tax laws.

What Happens When the Minor Turns 18?

Once the minor reaches 18 years of age, they gain full ownership rights to the property. Parents or guardians must complete the legal process to officially transfer the property to them.

If the child wishes to sell or mortgage the property after turning 18, they can do so without requiring court approval.

Conclusion

While a minor cannot directly buy property, parents or legal guardians can purchase or gift property in their child’s name. However, proper legal procedures must be followed, and the property remains under the guardian’s control until the child becomes an adult.

If you are considering buying property in your child’s name, it is advisable to consult a legal expert to ensure compliance with all legal and tax regulations.

Comments

Post a Comment

Popular posts from this blog

Muneeb Shafi: The Young Author Making Waves in Literature

Muneeb Shafi, a rising literary talent from South Kashmir's Shopian district, is making headlines for his remarkable achievements at a remarkably young age. Despite being an undergraduate student at Guru Kashi University in Talwandi, Punjab, Muneeb has penned numerous books, novels, articles, and pamphlets, showcasing a rare literary prowess. Not confined to writing alone, he is also a proficient calligrapher, adding another dimension to his artistic abilities. The young author's contributions to the literature field have been substantial and noteworthy. His notable work includes a book titled 'Journey from 10 to Nineteen,' focusing on the complexities of adolescence. This book has garnered attention and acclaim, propelling Muneeb Shafi, also known as 'Munna Michael,' into the limelight. Born on July 15, 2004, in Shopian, Muneeb Shafi, at just 18 years old in 2022, displays a maturity and talent beyond his years. Standing at 162cm with a weight of 60kg, he prese...
Post a Comment
Read more

Supreme Court's Landmark Decision: Can a Tenant Become the Owner After 20 Years? Here's the Full Truth

Today, many people are earning extra income by renting out their properties. For some, it’s a side business; for others, a full-fledged investment strategy. But the real question is—how secure is your property when it’s rented out for a long period? A commonly asked question is: If a tenant lives in a rented house for 20 years, can they claim ownership of that property? The Supreme Court of India has now provided a clear and final answer to this question. This ruling is extremely important for both landlords and tenants. What is 'Adverse Possession'? In Indian property law, there is a concept called Adverse Possession . This rule is part of the Transfer of Property Act and the Limitation Act of 1963. According to this rule, if a person stays in continuous and uninterrupted possession of a property for 12 years (in the case of private property) or 30 years (in the case of government property), and the actual owner does not challenge it legally, the person can claim ownershi...
Post a Comment
Read more

Avdhesh Rajawat: The Breakthrough Entrepreneur Revolutionizing Lives with Success Preneur

In today's fast-paced and ever-evolving digital world, the demand for individuals with strong digital skills and entrepreneurial mindset is skyrocketing. Avdhesh Rajawat, widely known as Avi, has emerged as a prominent figure in the realm of entrepreneurship and digital skill development. With his passion for empowering others, Avi has made a significant impact on the lives of over 300 individuals, helping them acquire essential digital skills and providing opportunities to earn money online. This article sheds light on Avi's journey, his work, and his commitment to fostering digital empowerment. Early Life and Education: Born in Sawai Madhopur, Avi hails from the vibrant city of Kota, Rajasthan. His educational journey began at Vidhyanjali Academy, a reputable CBSE school in Kota, where he completed his 12th grade. Avi's strong foundation in academics laid the groundwork for his future entrepreneurial endeavors. Entrepreneurial Journey: Avi began his entrepreneurial journe...
2 comments
Read more