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By:

C.S. Krishnamurthy

21 June 2025 at 2:15:51 pm

Parents Before Property

The Bombay High Court’s recent decision upholding the cancellation of a gift deed executed by elderly parents in favour of their son is more than a legal victory. It is a timely reminder that parenthood cannot be reduced to a property transaction. By affirming that parents may revoke a property transfer when children fail to honour their obligation of care and support, the Court has reinforced a principle that is both legal and moral. The verdict in the Ashwin Ramesh Soni v. Ramesh Bachaulal...

Parents Before Property

The Bombay High Court’s recent decision upholding the cancellation of a gift deed executed by elderly parents in favour of their son is more than a legal victory. It is a timely reminder that parenthood cannot be reduced to a property transaction. By affirming that parents may revoke a property transfer when children fail to honour their obligation of care and support, the Court has reinforced a principle that is both legal and moral. The verdict in the Ashwin Ramesh Soni v. Ramesh Bachaulal Soni & Ors., reinforces the objective of the Maintenance and Welfare of Parents and Senior Citizens Act, 2007. The Court recognised that when parents transfer property with the legitimate expectation of being cared for, and that expectation is wilfully defeated, the law can restore justice. A gift founded on trust cannot survive when that trust is fundamentally breached. The judgement raises uncomfortable questions. What does it say about society when ageing parents must seek justice against their own children? Why should those who devoted a lifetime to raising families spend their twilight years proving that they deserve dignity? Have we begun to mistake inheritance for entitlement and affection for convenience? Changing Times These are not merely legal questions. They reflect the changing character of Indian families. India takes pride in its tradition of strong family bonds. Close-knit families, cherished traditions and an enduring culture of honouring parents have long defined our collective identity. Such images have long symbolised the country’s cultural strength. But growing reports of elder abuse present a sobering reality. Many parents experience neglect, emotional humiliation or isolation within homes they built. Some are confined to a single room after transferring property. Others are abandoned altogether. The emotional trauma often outweighs the financial loss. The ruling recognises what may be called an unwritten family contract. Parents spend decades sacrificing personal comforts to educate children, fund their ambitions, conduct weddings and build family assets. In return, they expect not luxury but companionship, care, respect and emotional security. By acknowledging that certain family transactions rest on mutual trust rather than legal formalities alone, the Court has reaffirmed that the law will protect vulnerable senior citizens when that trust is exploited. Reports frequently describe retired parents evicted from homes gifted to children, widowed mothers fighting prolonged legal battles for shelter, and elderly couples seeking police protection against their own offspring. Many such cases remain hidden because families fear social stigma more than personal suffering. Family Trust The Maintenance and Welfare of Parents and Senior Citizens Act, 2007 was enacted precisely because traditional family safeguards were proving inadequate. Section 23 empowers authorities to declare property transfers void when they are made on the understanding that the recipient will provide for the transferor's basic needs, but subsequently fails to do so. The verdict has given practical meaning to this safeguard by making it clear that the law will not remain a silent spectator when trust is betrayed. Some critics argue that legal intervention weakens family relationships. The opposite is true. Good laws exist not because every family fails but because some do. Just as traffic laws protect responsible drivers from reckless ones, laws safeguarding parents protect families from exploitation without diminishing genuine affection. But society also has responsibilities. Financial advisers should caution senior citizens against transferring valuable assets prematurely. In many situations, a well-drafted will offers greater protection than an outright gift deed. Where property is transferred during one's lifetime, expectations regarding care and maintenance should be clearly documented to minimise future disputes. Children should remember that caring for ageing parents is not charity. It is gratitude expressed through everyday actions. I recall meeting an elderly gentleman at a bank several years ago. He proudly showed me documents transferring his house to his only son and remarked with complete confidence, “Now I have no worries. My son will take care of everything.” His face reflected absolute trust. Thankfully, countless children justify such trust every day. But when that faith is broken, the emotional consequences can be devastating. Indian culture has long viewed caring for parents as a privilege, not a burden. Honouring parents goes beyond living together. A caring phone call, a visit during illness, financial support or shared moments can bring comfort, dignity and belonging. Loneliness often wounds seniors more deeply than disease. When parents must approach courts for protection from their own children, it is time for society to introspect. (The writer is a retired banker and author. He can be reached at krs1957@hotmail.com. Views personal.)

TDS: The Silent Engine of India’s Tax System

By collecting tax at the point where income is generated, TDS reduces dependence on year-end filings and strengthens the tax system.

Tax Deducted at Source (TDS) has quietly transformed the way India collects taxes. Once seen mainly as a compliance requirement, it has become a key instrument of fiscal discipline and transparency. By collecting tax at the point where income is generated, TDS reduces dependence on year-end filings and strengthens the tax system.


Governed by the Income-tax Act, 1961, TDS applies to salaries, interest, rent, commissions and professional fees. Over time, it has evolved into a system that not only ensures timely revenue but also promotes wider accountability among taxpayers.


How TDS Works

At its core, TDS shifts the responsibility of tax collection from the taxpayer to the payer. Whether it is an employer deducting tax on salaries or a company paying professional fees, tax is withheld before the income reaches the recipient.


This simple mechanism ensures that tax is collected at the earliest stage, significantly reducing the chances of revenue leakage.


Revenue Lifeline

One of the most significant contributions of TDS is its ability to provide a steady and predictable stream of revenue. Instead of relying solely on annual tax returns, the government receives funds throughout the year.


This continuous inflow supports critical expenditures such as infrastructure, public services, and welfare schemes—ensuring that governance does not slow down due to cash flow constraints.


TDS has emerged as a strong deterrent against tax evasion. Since tax is deducted before income is received, the scope for concealment is drastically reduced.


Moreover, digital tools like Form 26AS and the Annual Information Statement (AIS) create a transparent financial trail. Any mismatch between reported income and tax credits is easily flagged, pushing taxpayers toward honest reporting.


Smarter TDS

In recent years, the government has moved to make TDS simpler, smarter and more technology-driven. Threshold limits have been raised to reduce the compliance burden on small taxpayers and businesses, while redundant provisions are being streamlined to improve efficiency.


The tax base has also widened, with TDS now extending to certain payments made by partnership firms to partners. At the same time, overlapping provisions such as TCS on goods, where TDS already applies, are being removed to avoid duplication and reduce confusion.


Further measures, including easier procedures for NRI property transactions and greater standardisation in TDS/TCS enforcement, aim to cut litigation and improve consistency. Automated systems for NIL or lower deduction certificates, along with centralised submission of forms such as 15G and 15H, are also making compliance faster and more transparent.


These reforms reflect a clear shift—from a control-based system to a more facilitation-driven tax regime.


The success of TDS today is deeply linked with technology. Platforms such as TRACES and the income tax portal have made it easier to track deductions in real time, download TDS certificates and file and revise returns digitally.


Recent rules have also tightened timelines—for example, correction statements now have defined deadlines to ensure accuracy in reporting and avoid mismatches in AIS and Form 26AS.


TDS is not just a collection mechanism—it is a behavioural tool. Since income details are already captured in government systems, taxpayers are encouraged to report accurately.


This has gradually led to a cultural shift where compliance is increasingly seen as the norm rather than the exception.


Persistent Challenges

Despite its strengths, the TDS system is not without problems. Multiple sections and varying rates make it complex to navigate, especially for small businesses. Errors in deduction and reporting are still frequent, while delays in issuing certificates often add to taxpayer frustration.


However, the government’s continued focus on simplification and digitisation is steadily addressing these concerns.


TDS has become one of the most effective tools in India’s tax administration. It ensures early tax collection, curbs evasion, and adds transparency to the system.


Recent reforms show the government’s intent to make TDS not just stricter but smarter and more taxpayer-friendly. As India moves towards a more digital, data-driven economy, TDS will continue to play a key role in strengthening fiscal stability.


In many ways, TDS is no longer just a tax mechanism—it has become the backbone of a more accountable and efficient tax system.


(The writer is a Chartered Accountant based in Thane. Views personal.)

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