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Direction for accumulation of income from transfer of property is valid till: (i) Life of the…

Under TPA section 17(1), a direction to accumulate income is void beyond the life of the transferor or a period of eighteen years from the date of transfer, whichever is…

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Direction for accumulation of income from transfer of property is valid till:
(i) Life of the transferor
(ii) Life of the transferee
(iii) Eighteen years from the date of transfer
(iv) Twenty years from the date of transfer

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Answer and explanation

Correct answer B

Under TPA section 17(1), a direction to accumulate income is void beyond the life of the transferor or a period of eighteen years from the date of transfer, whichever is longer, so the correct combination is "(i) and (iii)". The life of the transferee and a twenty-year period are not the statutory measures. Section 17(2) and section 18 contain exceptions, such as accumulations for paying debts and transfers for the public benefit.

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