Section 354 of The Indian Succession Act, 1925 in hindi
No interest is payable on the arrears of an annuity within the first year from the death of the testator, although a period earlier than the expiration of that year may have been fixed by will for making the first payment of the annuity.
Summary
- Prevents any interest from being paid on unpaid annuity amounts during the first year after the person making the will has died.
- Applies even if the will specifically ordered the first annuity payment to be made before that first year is over.
Practical examples
FAQ
1. Can I get interest on delayed annuity payments during the first year under Section 354 of The Indian Succession Act, 1925?
No, Section 354 of the Act clearly states that no interest is payable on arrears of an annuity within the first year after the testator's death.
2. What if the will says my annuity must be paid within three months, but the executor pays it late, does Section 354 of the succession rules allow interest?
Under Section 354 of the succession rules, you still will not receive interest on arrears within the first year, even if the will fixed an earlier date for the first payment.
3. Does Section 354 of the succession statute forgive the actual annuity payment itself for the first year?
Section 354 of the succession statute only stops the payment of interest on the arrears within that first year, it does not cancel the annuity payment itself.
Test yourself
Q1.Under Section 354 of The Indian Succession Act, 1925, when is interest payable on arrears of an annuity?
Q2.How does a will directing an early annuity payment affect interest under Section 354 of the succession rules?
Q3.What specific financial penalty is blocked by Section 354 of The Indian Succession Act, 1925 during the first year?
Q4.If a testator dies and leaves an annuity, what does Section 354 of the inheritance statute say about interest if the executor misses the first six months of payments?