A minor in India cannot buy property by himself/herself. But he/she can be the owner of the property, in a legal way.
While minors in India can legally own property, they cannot buy it themselves. Here's how guardians manage transactions, and the legal ropes they must climb
A minor in India cannot buy property by himself/herself. But he/she can be the owner of the property, in a legal way.
Legally, a person under 18 cannot enter into a contract, according to the Indian Contract Act, 1872. They also can't register a sale deed on their own, which falls under the Registration Act, 1908. However, the Transfer of Property Act, 1882, allows assets to be transferred to a minor, provided there's an adult, usually a legal guardian managing it.
That’s where the Indian Majority Act, of 1875, and the Hindu Minority and Guardianship Act, of 1956, come in. A child can receive property via inheritance or gift. Even a purchase is allowed if it’s made by a parent or court-appointed guardian on the child’s behalf.
But here’s where it gets tight: guardians don’t get a free pass to sell or mortgage the asset once it’s in the minor’s name. Section 8(2) of the Hindu Minority and Guardianship Act explicitly restricts any transfer or sale of a minor's immovable property without court approval. Any transaction that happens without that approval is deemed void under Section 8(3). And once that child hits 18, they can challenge it in court within three years.
Here’s how it works out
Guardian Certificate: The parent or guardian must first obtain a certificate confirming they are legally recognised to manage the minor’s estate.
Acquisition through Gift or Inheritance: The property must either be gifted or inherited. Purchase is only possible through the guardian.
Sale Deed Drafting: A sale deed is drafted with the guardian signing on the child’s behalf.
Affidavit Submission: The guardian files an affidavit declaring responsibility for managing the property in the minor’s best interests.
Stamp Duty Payment: The full applicable stamp duty must be paid; there are no exemptions for minors.
Registration: The deed, along with identification and court permissions (if applicable), has to be submitted to the local sub-registrar.
Record Update: Once registered, the property records must reflect the child’s name and the guardian’s authority over it.
They take full control of the property. They can sell it, lease it, or even gift it. However, if the property was mishandled while they were underage, say, it was sold without court sanction, they can drag the matter to court.
There have been several instances where individuals have returned to claim properties sold illegally when they were minors. Courts have sided with them when due process was ignored.
Let’s say the property in the minor’s name earns rental income. That income doesn’t just float tax-free. Under Section 64(1A) of the Income-tax Act, 1961, the income is clubbed with the parent’s earnings, specifically, the one with the higher income. They are taxed on it, just like it was their own asset.
A 30 per cent standard deduction on rental income is allowed, under Section 24(a), but the guardian pays the tax, not the minor. If the property is sold, capital gains tax applies. The proceeds might belong to the child, but the guardian is liable to file and pay taxes on their behalf.
Technically, no. Not directly. But legally, yes, with conditions. A guardian can buy it for the minor, and register it in the minor’s name, but the child has no direct role in the transaction until they come of age.
Every document, every stamp, and every signature is done by the guardian. Every sale or transfer is subject to court oversight. And every tax bill is paid by the guardian until the minor turns 18.
In theory, it protects the child. In practice, it adds layers of paperwork and legal accountability to an already complex system.