In the following sections "transfer of property" means an act by which a living person conveys property, in present or in future, to one or more other living persons, or to himself, or to himself and one or more other living persons; and "to transfer property" is to perform such act.
In this section "living person" includes a company or association or body of individuals, whether incorporated or not, but nothing herein contained shall affect any law for the time being in force relating to transfer of property to or by companies, associations or bodies of individuals.
Legal Commentary & Landmark Judgments: Section 5
Inter vivos conveyancing under Indian law requires a voluntary act by which a living person conveys property, in present or in future, to one or more living persons, or to himself, or to himself and others.
Crucially, courts consistently hold that family partitions, relinquishments, and settlements do not constitute transfers under this definition, as they merely acknowledge antecedent co-ownership rather than creating or conveying a new title.
Because Section 5 requires conveyance between living persons, testamentary dispositions (wills) do not attract TPA provisions, stamp duty, or mandatory registration under Section 54 or Section 123. A will takes effect only upon the testator's death, remaining entirely revocable during the testator's lifetime.