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BOMBAY PUBLIC TRUSTS
ACT, 1950 — Charity Commissioner (C.C.)
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Documents to be
filed |
Period |
Prescribed Form |
Procedures |
|
Application for
registration of the Trust (Sec. 18, Rule 6) |
Within 3 months of
creation of the Trust. |
Schedule II
|
a. Application in the prescribed
form.
b. Instrument (Trust Deed)
c. Affidavit
d. Consent letter
e. No objection for use of address |
|
Application for
registration of a trust created by will (Sec. 29) |
Within 1 month of
granting of probate/within 6 months of Testator's death whichever is
earlier. |
Schedule II
|
Application must be
signed and affirmed by the applicant, and to be accompanied by a true copy
of the Will and above procedures must be followed. |
|
Memorandum of
particulars of immovable properties (Sec. 18(7), Rule 6(7) |
Within 3 months of
creation of the Trust. |
Schedule II-A |
Memorandum to be
signed and affirmed by a trustee. |
|
Change (Section 22 and Rule 13) |
Within 90 days of
the occurrence of change. |
Schedule III |
To be signed and affirmed by a
trustee. It must be ensured that changes are communicated within 90 days
and thereafter it is the responsibility of the trustee to follow-up and
get the order of the changes. Changes for the appointment of the new
trustees will be filed along with the resolution, invitation letter,
consent letter and Affidavit as well as for Deletion of name of trustee to
be filed with letter of resignation, death certificate, Affidavit and
other relevant documentary evidence. |
|
Change (Section 22(1A), Rule 13(1A))
relating to Immovable property |
Within 90 days of the
occurrence of change. |
Schedule III-A |
Change schedule to be signed and
affirmed by a trustee along with relevant documents of the property, how
the property has come to the trust, Name and address of previous owner,
Evidence Affidavit and latest audited accounts. |
|
Budget (Sec. 31A Rule
16A) |
At least 1 month
before commencement of each accounting year. |
Schedule-VII-A |
If annual income exceeds
`
5,000/- for public religious trust and
`
10,000/- for other trusts, than to filed budget by making adequate
provisions for carrying out the objects of the trust, and for the
maintenance and preservations of the trust property. |
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Accounts and Audit (Secs.
32, 33(2), 33(4), 34, Rule 17, 21) |
Accounts to be
audited within 6 months from close of accounting year. |
Schedule-VIII for Balance sheet and Sch-IX for Income & Expenditure.
Sch-IXC for Statement of Contribution. |
Trust exempted from
requirements of audit is required to file accounts in Schedules IX-A &
IX-B. It is auditors duty to prepare Balance Sheet and Income &
Expenditure A/c and forward the same along with a copy of his report to
the trustee who in turn will forward the full set of audited accounts in
the Office of Charity Commissioner within the fortnight of completion of
audit. The trust having an annual income of
` 15,000/- or less is exempt
from audit. |
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Maintenance of
register u/s 36-B |
Maintain a register
for all movable and immovable properties. |
Schedule X-AA |
The changes to be
reported to Office of C.C. |
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Maintenance of
register by a Medical Centre u/s 41AA |
Governing Body of a
Medical centre shall maintain a register for recording the category of a
patient. |
Schedule X-AAA |
A register is
required to be maintained of indigent patients and patients from weaker
sections. |
Investments (Section
35)
Public trust can invest its funds in any of the
following modes :
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Scheduled Bank as defined in Reserve Bank of India Act, 1934.
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Postal Savings Bank.
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Co-operative bank approved by the State Government.
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Public Securities (Sec. 2(12)) (Units issued by the Unit Trust of India are
declared as Public Securities).
-
First
mortgage of immovable property situated in India provided the property is
not lease for a term of years, that is lease for 50 or 99 or 999, it must be
in perpetuity and for an indefinite period.
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Any
other investments permitted by CC by a special or general order. CC circular
provides that investment made pursuant to such order should not exceed 50%
of total investments.
IMMOVABLE PROPERTY (SECTION 36)
Investment in immovable property requires CC's
permission. No permission is necessary if immovable property is acquired to
fulfil objects of the trust; e.g., construction of school building, library,
etc.
Sale exchange, lease or gift of any immovable
property of a public trust is invalid unless previously approved by the CC.
Lease exceeding a period of 3 years requires prior permission of the Charity
Commissioner.
CONTRIBUTION (SECTION 58, RULES 32 & 33)
Every public trust not exempt having gross annual
income exceeeding
` 25,000/- has to pay contribution to Public Trust
Administration Fund at rates notified by State Govt. from time to time. For last
21 years, the rate notified has been 2%.
Gross annual income means gross income from all
sources including donations and offerings, but excluding corpus donations.
Contribution is payable at the prescibed rate on the gross annual income after
making deductions prescribed in Rule 32.
The following trusts are exempt from payment of
contribution.
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Small
trusts having annual income of ` 25,000/- or less.
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Public
trusts exclusively for advancement/propagation of *education/medical
relief/veterinary treatment. *(Till 5th August, 1997 the law provided
deduction for secular education.)
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Recognized Public Libraries and Reading Rooms.
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Public
Trusts exclusively for the purpose of relief of distress caused by scarcity,
drought, flood, fire, or other natural calamity.
Recently Mumbai High Court has by an interim order
stayed the payment of contribution in response to a P.I.L. The office of the
Charity. Commissioner is accepting the accounts from the year 2009 without
payment of contribution subject to the final order.
BORROWING POWERS OF TRUSTEES (SECTION 36A)
No trustee shall borrow moneys (whether by way of
mortgage or otherwise), even from Banks, for purpose of or on behalf of the
truste except with the previous sanction of the Charity Commissioner and subject
to such conditions and limitations as may be imposed by him in the interest or
protection of the trust.
PENALITIES (SECTION 66)
|
Section |
Subject |
Maximum Fine |
|
S. 18(1), 18(4)(1) |
Duty of trustees to
apply to Deputy/Assistant CC for registration of Public Trust within time.
|
Rs. 1,000/- |
|
S. 18(7)
|
Duty of trustee to
send memoranda of immovable property to certain officers/authorities within
time. |
Rs. 200/- |
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S. 22 |
Failure to report a
change. |
Rs. 1,000/- |
|
S. 22B |
Failure to make an
application within the time provided for. |
Rs. 500/- |
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S. 22C |
Failure to send
memoranda within the time provided for. |
Rs. 100/- |
|
S. 29 |
Duty of an executor
to apply for registration of a public trust within the time provided for.
|
Rs. 1,000/- |
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S. 32 |
Duty to keep
regular accounts. |
Rs. 1,000/- |
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S. 35 |
Failure or omission
to invest money in public securities. |
Rs. 2,000/- |
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S. 41AA |
Failure without
reasonable cause to comply with any directions issued under that section. |
Rs. 1,000/- |
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S. 59 |
Failure to pay
contribution u/s. 58 by a trustee or by a person charging or collecting
dharmada. |
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