Section 126 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.
Many donors ask whether a gift deed can be cancelled later. Section 126 gives a narrow answer: only on an event the parties agreed that does not depend on the donor's will, or in cases where a contract could be rescinded. A clause letting the donor take the gift back at will is void. This is explained as per the text of the Act consulted.
A donor and donee may agree that on a specified event which does not depend on the donor's will the gift is suspended or revoked. A gift agreed to be revocable at the mere will of the donor is void, wholly or in part. A gift may also be revoked in any case in which, if it were a contract, it might be rescinded, save want or failure of consideration. Otherwise a gift cannot be revoked. Transferees for consideration without notice are not affected.
Source note
The text consulted is a publisher's print of the Act showing amendments up to the Transfer of Property (Amendment) Act, 2002 (3 of 2003); later amendments should be checked. Illustration (b) is printed "The gift holds goods as to Rs. 90,000", which reads as though "holds good" was meant; it is flagged here and quoted as printed. How a gift is made is in our article on sections 123 to 125; what a gift is, is in Gift of Immovable Property, Section 122.
If you are drafting or contesting a gift deed, our legal dispute resolution service can review the document and the facts.
Paragraph 1: revocation on an agreed event
The donor and donee may agree that, on the happening of any specified event which does not depend on the will of the donor, a gift shall be suspended or revoked.
But a gift which the parties agree shall be revocable, wholly or in part, at the mere will of the donor, is void wholly or in part, as the case may be.
| Clause in the gift deed | Position under section 126 |
|---|---|
| "The gift is revoked if a stated event happens", where the event does not depend on the donor's will | Allowed: the parties may agree suspension or revocation on such an event |
| "The donor may take the gift back whenever he wishes" | Void as to the part made revocable at will |
| "The donor may take back part of the gift at pleasure" | Void as to that part; the rest holds |
The key is the independence of the event from the donor's will. An event such as the donee's death without descendants during the donor's lifetime fits; the donor simply changing his mind does not.
Paragraph 2: revocation on grounds that rescind a contract
A gift may also be revoked in any of the cases, save want or failure of consideration, in which, if it were a contract, it might be rescinded.
Two points follow. First, the Act borrows the contract-law grounds for rescission, such as consent that was not valid. For these grounds, see our articles on the Indian Contract Act, 1872 on when consent is valid and on voidable agreements where consent is not valid. The reader should check the current law for the corresponding provisions of that Act. Second, want or failure of consideration is excluded from the borrowed grounds, because a gift is made without consideration.
Paragraph 3: the general bar
"Save as aforesaid, a gift cannot be revoked." So outside the two routes above, the gift stands. A donor's regret is not a ground.
Paragraph 4: protecting later buyers
Nothing in the section affects the rights of transferees for consideration without notice. If the donee has passed the property to someone who paid for it and had no notice, revocation does not disturb that buyer's rights on the text.
The Act's illustrations
- (a) A gives a field to B, reserving to himself, with B's assent, the right to take back the field in case B and his descendants die before A. B dies without descendants in A's lifetime. A may take back the field. The event, B's death without descendants, does not depend on A's will.
- (b) A gives a lakh of rupees to B, reserving to himself, with B's assent, the right to take back at pleasure Rs. 10,000 out of the lakh. The gift holds good as to Rs. 90,000 (printed "goods"), but is void as to Rs. 10,000, which continue to belong to A.
Modern-style example
Anil gifts a flat to his nephew Karan by a registered deed. The deed says the gift is revoked if Karan does not complete his professional qualification by a stated date, an event outside Anil's will, and Karan agreed. That clause is within the first paragraph. The deed also says that Anil may cancel the gift "at any time if he feels like it". That clause is void, and under the text the gift is void to that extent. If Karan later turned out to have obtained the gift by a misrepresentation that would allow a contract to be rescinded, the second paragraph would allow revocation on that ground.
Practical points
- Donors: if you want a safeguard, tie it to a clear event outside your own will and write it in the deed.
- Do not rely on a clause that lets you revoke at will; it is void to that extent.
- Donees: read the deed for any suspension or revocation event, and keep records of how you obtained the gift.
- Buyers from donees: the saving for transferees for consideration without notice protects you only if you paid and had no notice.
- For the form of a gift: see our guide on gift deeds with onerous or conditional terms and revocation.
- Stamp duty and registration are separate subjects and are not covered here.
Need help with a gift deed or a revocation dispute?
Whether a clause in a gift deed is valid, or a gift can be revoked at all, depends on the exact words and the facts. Our legal dispute resolution team can read the deed with you and explain the position.
Key takeaways
- The parties may agree that a gift is suspended or revoked on a specified event not depending on the donor's will.
- A clause making a gift revocable at the donor's mere will is void, wholly or in part.
- A gift may be revoked on grounds that would rescind a contract, except want or failure of consideration.
- Otherwise a gift cannot be revoked.
- Transferees for consideration without notice are not affected.
Read next
- Sections 123 to 125: how a gift is made
- Sections 127 to 129: onerous gifts, universal donee and gifts in contemplation of death
- Gift deed: onerous gift, conditional gift and revocation
- Gift of Immovable Property, Section 122
Disclaimer: Based on a publisher's print of the Transfer of Property Act, 1882 showing amendments up to the Transfer of Property (Amendment) Act, 2002 (3 of 2003), as consulted on 2 October 2026. State amendments, later amendments, stamp duty and registration charges are not covered and should be checked. This article is general information, not legal advice; check the official text before acting.