Section 117 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Some testators direct that the income from a property be saved up instead of paid out, perhaps to build a fund for a grandchild. Section 117 sets a time limit on that direction and lists three purposes for which the limit does not apply.
As per the text of the Act consulted, where a will directs that income from any property be accumulated, wholly or in part, for a period longer than eighteen years from the death of the testator, the direction is void to the extent that it exceeds that period. At the end of the eighteen years the property and the income are dealt with as if the accumulation period had run out. The section does not affect a direction to accumulate for (i) payment of debts, (ii) provision of portions for children or remoter issue, or (iii) preservation or maintenance of property bequeathed.
What accumulation means
To accumulate income is to add it back to the capital year after year, instead of paying it to anyone. A will may do this for a number of reasons, for example to let a fund grow until a young beneficiary comes of age. Section 117 does not forbid accumulation. It limits how long a direction to accumulate can last.
The section is printed in the copy within square brackets, which mark words inserted or substituted; the copy does not say by which Act. The number is also bracketed in the list in Schedule III. These marks are noted here and do not change the reading.
Sub-section (1): the eighteen-year limit
Sub-section (1) reads in substance: where the terms of a will direct that the income arising from any property shall be accumulated either wholly or in part during any period longer than a period of eighteen years from the death of the testator, such direction shall, save as provided in the section, be void to the extent to which the period during which the accumulation is directed exceeds that period, and at the end of the eighteen years the property and the income thereof shall be disposed of as if the period during which the accumulation has been directed to be made had elapsed.
Four features are worth noting:
- The clock starts at the testator's death. Eighteen years are counted from that date, not from the date of the will.
- The direction is void only for the excess. A direction for thirty years is good for the first eighteen and void for the rest. The text does not strike down the whole direction.
- It applies to accumulation "wholly or in part". A direction to save only a part of the income is covered too.
- At the end of eighteen years the property and the income are disposed of as if the directed period had run out. The text of the section does not say more than that about the destination; it points to the dispositions of the will as if the accumulation period had ended.
If you are reading or drafting a clause of this kind, a legal consultation helps to count the years from the right date and to test whether an excepted purpose is present.
Sub-section (2): three excepted purposes
Sub-section (2) says the section shall not affect any direction for accumulation for the purpose of:
| Clause | Purpose |
|---|---|
| (i) | The payment of the debts of the testator or any other person taking any interest under the will |
| (ii) | The provision of portions for children or remoter issue of the testator or of any other person taking any interest under the will |
| (iii) | The preservation or maintenance of any property bequeathed |
The section then adds that "such direction may be made accordingly". The clause is a plain exception: for these three purposes the eighteen-year limit in sub-section (1) does not cut down the direction.
The text does not define "portions" or say for how long the exception may run. It simply says the section "shall not affect" a direction for these purposes. A reader who needs to rely on the exception should read the will's words against these three clauses closely.
Relation to section 114
Section 114 asks whether the vesting of a bequest may be delayed beyond a period of lives and a minority; read our article on the rule against perpetuity in wills. Section 117 is a separate limit about income being held back. A will may need to pass both tests.
The Transfer of Property Act, 1882 contains a parallel rule on accumulation for transfers between living persons; see our article on sections 15 to 18 of that Act and check the current law for the corresponding provision.
Examples with invented names
Beyond the limit. Lalita dies and her will says that the rent from her building shall be added to a fund for twenty-five years and then handed to her grand-nephew. The direction is void for the years beyond eighteen from Lalita's death. After eighteen years the property and the income are dealt with as if the accumulation period had ended.
Excepted purpose. Another will directs that income be accumulated for twenty-five years to pay off a debt that the testator's son owes and who takes an interest under the will. The Act's sub-section (2)(i) names the payment of debts of "any other person taking any interest under the Will". The direction is not affected by sub-section (1).
Part only. A will directs that half the income of a plot be added to capital for thirty years, and the other half be paid to the testator's sister. The words "wholly or in part" bring the saved half within sub-section (1), so that half is void as to the years beyond eighteen unless one of the three purposes applies.
Where section 117 applies
Schedule III prints the number of section 117 within square brackets in the list of sections of Part VI that section 57 applies to the wills and codicils of Hindus, Buddhists, Sikhs and Jainas described there. Restriction 1 in the Schedule adds that nothing in the listed sections authorises a testator to bequeath property he could not have alienated during his life. Section 58 as printed says Part VI does not apply to the testamentary succession to the property of any Muhammadan. See our article on wills of Hindus, Buddhists, Sikhs and Jainas and Schedule III.
The print consulted shows amendments only up to the Indian Succession (Amendment) Act, 2002 (26 of 2002); check for later amendments. For the tax side of income held in a fund for a beneficiary, see our income-tax guides.
Need help with an accumulation clause?
If a will directs that income be held back for years, the limit and the exceptions need to be read against its exact words. You can start with a legal consultation before any income is released or retained.
Key takeaways
- A direction to accumulate income beyond eighteen years from the testator's death is void to the extent of the excess.
- The eighteen years run from the death of the testator.
- The direction can cover all the income or only part.
- Three purposes are excepted: debts, portions for children or remoter issue, and preservation or maintenance of property bequeathed.
- This limit is separate from the rule against perpetuity in section 114.
Read next
- Section 114: rule against perpetuity in wills
- Sections 115 and 116: bequest to a class partly void and bequest after a void bequest
- Section 118: bequest to religious or charitable uses
- Tax planning through a will: HUF, private trusts and section 168
Disclaimer: Based on an unofficial print of the Indian Succession Act, 1925 showing amendments up to the Indian Succession (Amendment) Act, 2002 (26 of 2002), as consulted on 2 October 2026. It explains the words of the statute only; later amendments, State amendments and rules, court fees and the way courts apply these sections should be checked. This article is general information, not legal advice; check the official text before acting.