What is Self Acquired Property ?

There are various types of properties under the Indian law. In this answer I will explain about self acquired property and ancestral property. I will describe the thin line between what is self-acquired property and ancestral property as many people have misconception between these two terms.

Any Property which is purchased by your own personal income is known as self acquired property. As per self acquired property definition, it is a property on which the individual has his own rights.

As per the laws, some of the following will be considered as self-acquired property. 

• Property acquired from any person other than his or her paternal ancestors. 

• Property acquired by the Hindu as his share of the partition of joint family property provided he has no son in existence. 

• Property gifted by the father to her daughter at her marriage is known as separate property or self-acquired property.

• Self-acquired property can become ancestral property if passed in the pool of ancestral property ventures.

Any property which is passed from four generations is known as ancestral property.The grandson and granddaughter have equal rights on this type of property by birth.

• According to the Hindu law a daughter can claim for father’s ancestral property any time in his life or after his death.

• But in case of Father’s self-acquired property,she can not claim for that property. The self-acquired property owner has his rights to do whatever that person wants.

These are some points that I have explained about what is self-acquired property, its important elements, and the difference between ancestral property and self-acquired property. 

Self acquired property

in family law

is a type of property that an individual has acquired or purchased using their own funds and resources. It is without any inheritance or gift from a family member or relative. The individual who acquired it has full rights and control over its use and disposal.

Here are some key characteristics of

what is the self acquired property in Indian law

:

Self-acquired property is completely owned by the individual who acquired it. They have legal title and ownership rights over the property.

• The property is bought using the individual's own financial resources. It includes income, savings, investments, or loans taken in their name.

• The individual has the complete right to sell, transfer, lease, or mortgage the property. It is subjected to applicable legal restrictions and regulations.

• In the absence of a will, self-acquired property is passed on to legal heirs through succession laws.

• Income generated from self-acquired property, like rental income or capital gains from its sale, is subject to income tax.

• There is a well-protection given to

  self-acquired property in family law

  .

However, it is important to maintain proper documentation, records, and clear titles to avoid legal disputes in the future.

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The concept of self acquired property in Hindu law is simple. As per the Hindu Succession Act 1956, any property that a person acquires either by way of his/her own or by way of division of the ancestral property is called self-acquired property.  I hope the basic meaning of self acquired property is now clear to you. The person is free to dispose of the property whenever they like or in whatever manner they choose as well. Let me share more details about it.

What is self-acquired property in Indian law and also its difference with ancestral property?

Property ownership generally is divided into two types, self-acquired properties and ancestral properties. Self-acquired property is the property that an individual acquires through his or her deeds. On the other hand, ancestral property is a property that an individual acquires through inheritance. 

In a self-acquired property, the ownership remains straightforward, and the buyer is the sole owner of the property. But in ancestral property, ownership gets complicated. In most cases, there is more than one person who claims ownership of the property. As for the self-acquired property rules, let me tell you that, as per the latest orders of the Supreme Court, daughters will enjoy the same right as sons over self-acquired property as per the Hindu Succession Act. 

For Muslims, there is no differentiation between self-acquired and inherited property. Both men and women enjoy the same rights over property, but their share differs. Islamic women get half of what the men get.

I hope you have understood the rules of self acquired property in Hindu law.

When you wish to sell a self-acquired property, you do so as the owner. You are allowed to sell your independently obtained property to whomever you choose. But I want to add an important point here. In the event of self-acquired property of the father, he is free to assign the ownership rights to whoever he chooses. So let’s take a look at the latest supreme court judgments on self acquired property.

What is the Supreme Court's judgement on self-acquired property?

The daughters of a male Hindu who died without a will might be allowed to acquire the self-acquired. It also includes other possessions gained in the division by the father and would have priority over other related members of the family, the Supreme Court said. The judgement addressed the ownership rights of Hindu women and widows under the Hindu Succession Act. It was the result of a challenge against the Madras High Court's decision.

What is a definition of self acquired property?

Your self-acquired property includes any assets you buy with your own funds. It is known as separate or self acquired property. Every answer above is enough to understand self-acquired property rights. However, a property that you receive as an inheritance from your paternal ancestors is known as ancestral property.

Now you are aware of the latest Supreme Court judgments on self acquired property.

Hi Buddy,

I am a property advocate. I have a considerable amount of knowledge about Indian property law. I have been practising law for 30 years. I have often noticed my clients getting confused between self acquired property and ancestral property. I would like to address the confusion and provide my insights about the self-acquired property under Hindu law.

I have gone through the previous answers and I completely agree with their understanding about the same. I really liked the way Vidha explained the self acquired meaning. I was also happy with Frederick’s answer. I would like to add a few points to it.

When my clients ask me whether a property acquired through will is self-acquired property or not, I try to highlight the fact that, according to Mitakshara law of Succession, father's self-acquired property handed to son by Shall/gifts will preserve the character of self-acquired property and will not become ancestral property unless the testament expresses a contrary intention.

The Delhi High Court summarised when a property becomes ancestral or self-acquired in the instance of a Hindu Undivided Family (HUF) under Section 8 of the Hindu Succession Act, 1956 (HSA):

• If a person dies after passing HSA and no HUF exists at the time of his death, his immovable property is inherited by his successors – in – interest as self-acquired property in the hands of the successor and not as HUF property, even though the successor(s) inherits 'ancestral' property i.e., property belonging to his parental ancestor

• Only if an individual's property is dumped into a common hotchpotch after 1956 (and when a joint hindu family did not exist prior to 1956) may a HUF/joint hindu family be formed. As a result, if a HUF property exists as a result of a person's self-acquired property being thrown into the common hotchpotch, coparceners, etc. have an entitlement to a share in such HUF property. An HUF can also exist if paternal ancestral properties were inherited prior to 1956 and the parties' status as to the properties was maintained after 1956 with respect to the properties inherited prior to 1956 from paternal ancestors. If the status and position of the HUF and its properties survive after 1956, a coparcener, for example, will have the ability to seek property split

• An HUF might have been formed before 1956 without inheriting ancestral property from paternal ancestors, as HUFs could have been formed by combining individual property into a collective hotchpotch. If a HUF exists after 1956, a coparcener or other member of the HUF has the right to divide the HUF's assets

I would like to conclude my answer about the self-acquired property under hindu law. However, I would like to recommend that if you face any kind of confusion regarding property laws, it is better if you seek legal advice. I hope this is fine:)

Read More:

One of the commonly asked questions under the Hindu Law, is, whether a property acquires the character of ancestral property or self-acquired property. Don’t worry, I will tell you what is self acquired property under Hindu law and how it is different from ancestral property.

Any property that you buy with your own money, is considered your self-acquired property. On the other hand, a property that you inherit from your paternal ancestors is considered your ancestral property.

Before I tell you about the self acquired property rights, I want you to know that if you get your share in your ancestral property by way of a gift deed or a will, then it doesn’t become your self-acquired property.

As a self-acquired property’s the owner, you decide when you want to sell it. In the case of ancestral property, the consent of all the family members is needed, to proceed with the transaction. As it’d need a lot of effort and time, selling ancestral properties is more difficult than selling self-acquired properties Plus, even if a single family member objects to the sale, the deal may not take place.

You’re free to give your self-acquired property to anybody you want to. In the case of ancestral property, all coparceners accrue their share in the property by birth and it’s quite difficult to deny anyone their right in their ancestral property.

No matter how valuable or large, an ancestral property is co-owned by every member of the family, who is entitled to claim his share in it. On any day, the family’s head may choose to opt for a partition, leaving you in charge of only a small portion of the property. In the case of self-acquired properties, as a sole owner, you have an exclusive right over your property and your ownership remains constant.

Read more:

Now you know what is self acquired property in detail.

Any property that you buy with your own money is considered self-acquired property. You are the sole owner of the property and you can sell it whenever you want to. You can even transfer it to anyone you want anytime. My father also transferred his self acquired property to all of us. You can get a better idea about what is considered self-acquired property with Vidha's answer above. Let’s see self-acquired property rights.

Rights related to self-acquired property:

The Supreme Court ruled that the daughters of a Hindu man who dies without a will are allowed to receive self-acquired and other possessions earned during the father's split. The court further stated that these daughters would be given priority over other family members, such as the sons and daughters of the deceased father's siblings. Under the Hindu Succession Act, the property rights of Hindu women and widows were addressed in the decision.

If a property of a male Hindu passing away without a will is self-acquired or acquired in the division of a coparcenary or a family property, it would disappear by inheritance rather than survivorship, and a daughter of such a male Hindu would be permitted to acquire this property in priority to all other securities.

How to prove self acquired property ownership?

The Court noted that documentation in the form of a sale deed and evidence of payment of the sale consideration must be shown to identify the property as self-owned property. You must have obtained title to the agricultural land by signing a sale agreement when you purchased it. Even if you don't have it, you must have paperwork proving that the property was registered in your name or at the very least the property's patta.

What happens to self acquired property of mother?

A son is not entitled to any share of the self-acquired property during his mother's lifetime. If a Hindu female (mother) dies without leaving a will, the property is distributed between legal heirs according to the rules of the Hindu Succession Act. Husbands, sons, and daughters are the legal heirs (if predeceased, their children). Even if the mother died before the partition, her children are entitled to this portion after the partition. Married daughters can pursue their legal rights by filing a lawsuit in court for property devolution under the Hindu Succession Act.

This guides you about self-acquired property rights.