A person has two ways to own property – creation or inheritance. Inherited property is known as ancestral property while created property, using one’s own funds, is known as self-acquired property.
What is self-acquired property under the Hindu Succession Act?
Unlike an ancestral property, in which the owner has a share since birth as a coparcener, a self-acquired property is bought using one’s funds. Property rights are created through one’s efforts. Property received through a will, a gift deed or from the maternal family also qualifies as self-acquired property.
See also: Benefits of self-acquired properties for its owners
Inheritance laws of self-acquired property
The owner enjoys an absolute right in such a property. The owner’s children don’t have a birthright and the owner is free to deal with the property in any manner when it comes to ownership transfer.
However, this is possible only if the owner leaves a will, stating the rules of property division. In the absence of a will, that is, dying intestate, the property will be divided based on inheritance laws.
Read also: Who is an heir and what is inheritance?
Self-acquired property in common pool treated as joint property: Karnataka HC
If a member of a Hindu Undivided Family (HUF) puts their self-acquired property into the common pot, giving up their individual claim, it becomes a joint property, the Karnataka High Court (HC) has ruled.
While dismissing an appeal by one T Narayana Reddy and another, Justice Krishna S Dixit and Justice G Basavaraja, said: “Law relating to blending of separate property with those of joint family is well settled. Such an intention can be inferred by the words and if there are no words, then from his conduct.”
Housewives have equal share in husband’s self-acquired property: Madras HC
Housewives have an equal share in the property purchased by the husband since they contribute to the acquisition through daily chores, the Madras High Court (HC) has ruled. The ruling came as a verdict in the Kannaian Naidu and others versus Kamsala Ammal and others case.
“No law prevents the judges from recognising the contributions made by a wife facilitating her husband to purchase the property. In my view, if the acquisition of assets is made by joint contribution (directly or indirectly) of both the spouses for the welfare of the family, certainly, both are entitled to equal share,” the HC said in the order dated June 21, 2023.
“In generality of marriages, the wife bears and rears children and minds the home. She, thereby, frees her husband for his economic activities. Since it is her performance of her function which enables the husband to perform his, she is in justice, entitled to share in its fruits,” it added.
FAQs
In how many categories can a property be divided?
A property can be divided into two categories – ancestral property and self-acquired property.
What is an ancestral property?
An ancestral property belongs to your forefathers and is passed on through generations. An ancestral property is inherited for up to three generations of a Hindu family.
What is self-acquired property under Hindu law?
Self-acquired property is bought using the owner’s funds without the help of any other party.
How do you prove property is self-acquired?
Property registration documents, like the sale deed, clearly state the owner and how the property was acquired, establishing the status as self-acquired.
What are the rules of self-acquired property?
If a Hindu dies without leaving a will, the self-acquired property will be distributed among the legal heirs as per the Hindu Succession Act. However, they can leave a will and give the self-acquired property to anyone they like.
Can a self-acquired property be gifted?
Yes, as the sole owner, the owner is free to gift a self-acquired property.
Can a father sell his self-acquired property?
Yes, a father can sell his self-acquired property.
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An alumna of the Indian Institute of Mass Communication, Dhenkanal, Sunita Mishra brings over 16 years of expertise to the fields of legal matters, financial insights, and property market trends. Recognised for her ability to elucidate complex topics, her articles serve as a go-to resource for home buyers navigating intricate subjects. Through her extensive career, she has been associated with esteemed organisations like the Financial Express, Hindustan Times, Network18, All India Radio, and Business Standard.
In addition to her professional accomplishments, Sunita holds an MA degree in Sanskrit, with a specialisation in Indian Philosophy, from Delhi University. Outside of her work schedule, she likes to unwind by practising Yoga, and pursues her passion for travel.
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Benefits of self-acquired properties for its owners.
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