What is Section 118 of the Transfer of Property Act?
Asked by: Kristin Orn | Last update: April 10, 2026Score: 4.9/5 (5 votes)
Section 118 of India's Transfer of Property Act, 1882, defines "Exchange" as the mutual transfer of ownership of one thing for the ownership of another, where neither thing (or both things) is money, essentially a barter of properties, and requires the same formalities (like registration for immovable property) as a sale. This legal provision distinguishes exchanges from sales (which involve a price in money) and establishes the rules for such property swaps, treating parties as both buyer and seller.
What is Section 118 transfer of property?
118. When two persons mutually transfer the ownership of one thing for the ownership of another, neither thing or both things being money only, the transaction is called an “exchange”. A transfer of property in completion of an exchange can be made only in manner provided of the transfer of such property by sale.
What is the violation of Section 118?
Whoever intending to facilitate or knowing it to be likely that he will thereby facilitate the commission of an offence punishable with death or imprisonment for life; voluntarily conceals by any act or omission or by the use of encryption or any other information hiding tool, the existence of a design to commit such ...
What is Section 118 A has been issued?
Section 118(a) of the Negotiable Instrument Act, is that the amount Promissory Note is valid by consideration, unless the plaintiff has rebutted the said presum... consideration. On the other hand, under Section 118(a) of the Negotiable Instrument Act, the presumption is that once the execution of the Promissory N...
What can be transferred under the Transfer of Property Act?
Property transfer can be in the form of a sale, gift, mortgage, or lease. Additionally, the Act applies to both movable and immovable property.
Exchange: Section 118 TPA
Which assets cannot be transferred?
Right to sue cannot be transferred. If you hold a public office such as judge, inspector, doctor, etc, then you cannot transfer your public office to anyone. Stipends related to Military, Naval, Air Forces, Civil Prisoners, government pensions, etc are personal rights and cannot be transferred.
What is the best way to transfer property between family members?
The best way to transfer property title between family members often involves a Quitclaim Deed, due to its speed and simplicity, especially for gifts or added family members, though it offers no title guarantees. Other methods include Gift Deeds, Bargain Sales (selling below market value), or incorporating it into a Will/Trust for after death, with the choice depending on tax, mortgage, and inheritance goals. Always consult an attorney to understand tax (gift/capital gains) and mortgage implications, and ensure proper recording with the county recorder.
What is the purpose of section 118?
All contracts of sale or sales by trust deed, for the purpose of housing for persons and families of low or moderate income shall bear interest.
What are the presumptions of Section 118?
118. Presumptions as to negotiable instruments. (a) of consideration; (b) as to date; (c) as to time of acceptance; (d) as to time of transfer; (e) as to order of indorsements; (f) as to stamp; (g) that holder is a holder in due course; 119.
Is section 118 still in effect?
The TCJA effectively repealed section 118 as applied to non-shareholder contributions to capital. As a consequence, nearly all cash grants received either from a governmental entity or from a civic organization will now be included in taxable income.
What legal cases involve section 118?
An oath is described as an affirmation or other method that is authorized by law to affirm the truth of a statement. PC 118 perjury laws apply to testimony in a courtroom or during a civil deposition, statements made in a sworn affidavit and declaration, and facts that are submitted in a driver's license application.
Is section 118 bailable or not?
Offence : Voluntarily causing grievous hurt by dangerous weapons or means [except as provided in section 122(2)]. Punishment : Imprisonment for life or imprisonment of not less than 1 year but which may extend to 10 years and fine. Cognizable or Non-cognizable : Cognizable. Bailable or Non-bailable : Non-bailable.
What is the section 118?
IPC Section 118 - Concealing design to commit offence punishable with death or imprisonment for life | Devgan.in.
What are the gifts under Transfer of Property Act?
According to Section 122 of Transfer of Property Act, 1882 'Gift' is defined as the transfer of certain existing moveable and immoveable property made voluntarily and without consideration, by one person called the donor, to another, called the donee, and accepted by or on behalf of the donee.
What is the doctrine of holding out in the Transfer of Property Act?
A transferee from the ostensible owner is protected against the real owner under the doctrine of holding out embodied in Section 41 of Transfer of Property Act. This section deals with a case where the rights of two innocent parties come into conflict.
What are the pros and cons of TOPA?
TOPA can help preserve affordability and facilitate repairs or improvements in older, smaller buildings, but it introduces delays, increases costs, and creates uncertainty— factors that discourage investor and lender interest in new developments and major renovations.
What is the SEC 118 of evidence?
All persons shall be competent to testify unless the Court considers that they are prevented from understanding the questions put to them, or from giving rational answers to those questions, by tender years, extreme old age, disease, whether of body or mind, or any other cause of the same kind. Explanation.
What is not legally enforceable debt?
If for example, the cheque was drawn in respect of a debt or liability payable under a wagering contract, it could have been said that that debt or liability is not legally enforceable as it is a claim, which is prohibited under law.
What are the two types of presumptions used in the law of evidence?
In law, a presumption is an "inference of a particular fact". There are two types of presumptions: rebuttable presumptions and irrebuttable (or conclusive) presumptions.
What is the main residence exemption for Section 118?
Section 118-160 provides the main residence exemption applies if a dwelling that is the main residence is accidentally destroyed and the land is disposed of without another dwelling being built on it and no other dwelling is treated as the person's main residence at any time when the land was owned.
How does section 118 affect businesses?
Corporations are generally exempt from tax on contributions made to corporate capital. The general rule regarding contributions to capital is stated in Sec. 118(a): “In the case of a corporation, gross income does not include any contribution to the capital of the taxpayer.”
What is the 118 clause 1?
Rules of procedure. (1) Each House of Parliament may make rules for regulating, subject to the provisions of this Constitution, its procedure and the conduct of its business.
What are common mistakes in property transfer?
Common property transfer mistakes include skipping professional legal review, failing to do thorough due diligence (like title searches for liens), overlooking hidden costs (taxes, fees), making errors in contract details or document execution, and neglecting to inform insurance or lenders, leading to legal issues, financial losses, and invalid transfers.
How to gift a house to a family member without tax?
When you give anyone other than your spouse property valued at more than $19,000 ($38,000 per couple) in any one year, you have to file a gift tax form. But as an individual, you can gift a total of $15 million (in 2026) over your lifetime without incurring a gift tax.
How much does it cost to transfer a deed to someone else?
Transferring a property deed costs vary but generally include attorney/preparation fees ($150-$300+), county recording fees ($10-$100+), and potential state/local transfer taxes (ranging from small percentages to significant amounts) based on property value, with costs influenced by location and property complexity, so checking with your county recorder and an attorney is crucial for an accurate estimate.