New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    As per the Transfer of Property Act 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 the life of the transferor, or a period of ___________ from the date of transfer, such direction shall be void to the extent to which the period during which the accumulation is directed exceeds the longer of the aforesaid periods
    A Eight years Correct Answer Incorrect Answer
    B Eighteen years Correct Answer Incorrect Answer
    C Thirteen years Correct Answer Incorrect Answer
    D Twelve months Correct Answer Incorrect Answer
    E Twenty- eight years Correct Answer Incorrect Answer

    Solution

    Section 17 Direction for accumulation— (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 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.

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