Sections 351-355 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.
If a legacy is paid late, does it carry interest, and from when? Sections 351 to 355 answer for general legacies and annuities. They give a main rule, three exceptions, a rule when a time is fixed, a rate, and two rules for annuities. This article explains the five sections, as per the text of the Act consulted.
Where no time is fixed for the payment of a general legacy, interest begins to run from the expiration of one year from the testator's death (s.351), with exceptions where the legacy is in satisfaction of a debt, where the testator was a parent or more remote ancestor, or where a sum is bequeathed to a minor for maintenance. Where a time is fixed, interest runs from that time (s.352). The rate is four per cent. per annum, or six per cent. per annum where the testator was a Hindu, Muhammadan, Buddhist, Sikh or Jaina or an exempted person (s.353).
Section 351: no time fixed
Where no time has been fixed for the payment of a general legacy, interest begins to run from the expiration of one year from the testator's death. This fits with s.337, under which an executor is not bound to pay a legacy until one year from the death (see our article on sections 334 to 337).
The Exception to s.351
Three cases are listed, where interest runs from the death of the testator:
- In satisfaction of a debt. The legacy is bequeathed in satisfaction of a debt.
- Parent or ancestor. The testator was a parent or a more remote ancestor of the legatee, or has put himself in the place of a parent of the legatee.
- Minor with maintenance. A sum is bequeathed to a minor with a direction to pay for his maintenance out of it.
An invented example: Mr. Reddy's will leaves Rs. 1,00,000 to a friend, Anwar, and Rs. 1,00,000 to his granddaughter Sneha, without fixing a time for payment. Anwar's legacy bears interest from the expiration of one year from the death. For Sneha, the testator was a more remote ancestor of the legatee, so on the second exception her legacy bears interest from the death.
If you are an executor calculating interest on legacies, or a legatee who thinks interest is owed, a short legal consultation can help you apply these sections to the will.
Section 352: time fixed
Where a time has been fixed for the payment of a general legacy, interest begins to run from the time so fixed. The interest up to that time forms part of the residue of the testator's estate.
The Exception to s.352
Where the testator was a parent or a more remote ancestor of the legatee, or has put himself in the place of a parent of the legatee, and the legatee is a minor, the legacy bears interest from the death of the testator, unless a specific sum is given by the will for maintenance, or unless the will contains a direction to the contrary.
| Case | Interest begins | Section |
|---|---|---|
| General legacy, no time fixed | Expiration of one year from the testator's death | 351 |
| ... in satisfaction of a debt | From the testator's death | 351, Exception (1) |
| ... testator a parent or more remote ancestor, or in place of a parent | From the testator's death | 351, Exception (2) |
| ... sum to a minor with direction to pay maintenance | From the testator's death | 351, Exception (3) |
| General legacy, time fixed | From the time so fixed (interest up to then forms part of residue) | 352 |
| ... testator a parent or ancestor etc. and legatee a minor | From the testator's death, unless a specific sum is given for maintenance or the will directs otherwise | 352, Exception |
Section 353: the rate
The rate of interest shall be four per cent. per annum in all cases except when the testator was a Hindu, Muhammadan, Buddhist, Sikh or Jaina or an exempted person, in which case it shall be six per cent. per annum. Both figures are as printed. The reader should note that s.347 (which concerns interest until investment of residue for life) uses its own words; see our article on sections 345 to 348.
Section 354: arrears of an annuity
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 the will for making the first payment of the annuity. This works with s.338, where the first payment of an annuity with no fixed time is made at the expiration of a year next after the death (see our article on sections 338 to 344).
Section 355: a sum to be invested to produce an annuity
Where a sum of money is directed to be invested to produce an annuity, interest is payable on it from the death of the testator. The text consulted gives no rate other than the one in s.353 and says nothing further.
Applying the sections: a short method
- Is it a general legacy? Sections 351 and 352 speak of a general legacy. For other kinds, read the section that applies.
- Is a time fixed? If not, s.351; if so, s.352.
- Does an exception apply? Check the debt, parent or ancestor, and minor-maintenance cases.
- Which rate? Four per cent. per annum, or six per cent. per annum for the classes named in s.353.
- Is it an annuity? Then ss.354 and 355.
For the order in which an executor pays out and what happens if assets fall short, see our article on sections 326 to 331. For a suit to recover a legacy, see our post on articles 106 to 110 of the Schedule to the Limitation Act, 1963, which is a separate Act. For how any interest received is taxed, see our income-tax guides, such as tax on inheritance and will.
Later amendments are not shown in the text consulted and should be checked.
Need help calculating interest on a legacy?
If you are an executor or legatee and want help working out which section applies to a particular legacy, we can explain the text and help you set it out. Start with our legal consultation service.
Key takeaways
- General legacy with no time fixed: interest from the expiration of one year from the death (s.351), with three exceptions where it runs from the death.
- Time fixed: interest from that time, and the interest up to then is part of the residue (s.352); an exception applies for a minor legatee of a parent or ancestor.
- Rate: four per cent. per annum, or six per cent. per annum for the classes named (s.353).
- No interest on arrears of an annuity within the first year (s.354); interest runs from death on a sum directed to be invested to produce an annuity (s.355).
Read next
- Sections 349-350: produce of a specific legacy and of the residuary fund
- Sections 356-361: refund of legacies and distribution of assets after notice
- Sections 338-344: payment of annuities and investment to provide for legacies
- Executor duties under a will: probate, inventory and distribution
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.