FIXED ANNUITY  

Date:             

Now hereby it is agreed as follows:

1. The annuity is purchased by Mr./Ms. ________ of ________(add), from _____(name of the Co./firm) _____(add), of Rs. _____ for the period of ___ years.
2. The annuity will commence on the day ___ of ___month ____ year.
3. The annuity is used before the age of 59 ½ years of the purchaser then it would not be exempted from the deduction under section 10(10A) and 80AAA of the Income tax act.
4. The annuity shall begin after the retirement of the purchaser as the purchaser attains the age of 60 years as per the rules of the Income tax act aforesaid the purchaser can use the annuity from _____ (date).
5. The purchaser shall receive Rs. ______ in his/her bank A/c of the _____(name of the bank) on date ______ of every month till the death of the purchaser.
6. The annuity is fixed in nature it can only be used enjoyed by the purchaser for the rest of his life aforesaid.
7. The interest paid on annuity by the vendor will be ___ per cent per annum, on the maturity of the annuity the annuitant/purchaser.
8. The annuity shall not be transferable to anyone after the death of the purchaser the annuity will lapse.
9. The purchaser has to present a certificate of him being alive every year for the rest of his life in the month of ______ which has to be self attested if the purchaser is unable to submit such certificate within the reasonable period of time the annuity shall lapse if the purchaser unable to submit himself the certificate then his representative can do so the name of the representative has to be declared beforehand.
10. The annuity amount paid by the purchaser Rs. ______ is not guaranteed to be paid fully if the purchaser died the annuity shall lapse.
11. The annuity is exempted from income tax under section 10(10A) and 80CCC of the Income Tax Act 1961.
12. The vendor will provide statutory declaration made by the competent decadents verifying the identity and age of the vendor, the identity of the present trustees of the settlement, the death of [previous trustees] and [any other matter of pedigree affecting the title or the trusteeship], and such statutory declaration will exhibit certificates in the long form of the vendor birth and of all other material births marriages or deaths. The vendor will make the said statutory declaration in support of his own expense will himself make a statutory declaration in support of his title to the said life interest in such form as the purchaser shall reasonably require. The Purchaser shall accept such statutory declaration as -aforesaid as sufficient evidence of the matters therein stated.
13. The vendor hereby authorizes the purchaser to make such inquiries as the purchaser thinks the fit of the trustees of the said settlement regarding the constitution of the trust fund, any dealings there with the answer of one only of the trustees to any such inquiries.
14. The vendor will deliver an abstract of the title within ______ days thereof.
15. Any requisitions on the title shall be the abstract and subject solicitors within _____ days after the delivery of the abstract and subject thereto the title shall be deemed to be accepted.
16. If the purchaser shall take any objection or make any requisition which the vendor shall be unable or on reasonable grounds unwilling to remove or comply with and the purchaser shall not withdraw such objection or requisition within ten days after being required or his solicitors (notwithstanding any intermediate negotiation or litigation) rescind this agreement and the purchaser shall thereupon return all abstract and papers in his possession belonging to the vendor and make no claim for the costs or otherwise.
17. Upon payment of the purchase money at the time and place aforesaid the vendor shall by a proper instrument grant the said annuity to the purchaser out of them and by way of a first charge on the said life interest of the vendor.
18. The said instrument shall contain provision to the effects set forth in the second schedule hereto and such other power and provision to the effect set forth in the second schedule hereto and such powers and provision as are usual in grants and such other powers and provision as are usual in grants of the like nature.
19. All expenses of and incidental to the preparation and execution by both parties and completion of the said instrument and the cost the trustees of answering any inquiries shall be paid by the purchaser.

 

Witness

1. _______________
2. _______________

 

Particulars of investment

(                                                 )

Signature of both parties