Section 30 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 30 is the trustee's shield. Subject to the deed and to sections 23 and 26, each trustee is chargeable only for the money, stocks, funds and securities he actually receives, is not answerable for another trustee, is not answerable for a banker, broker or other person in whose hands trust property is placed, and is not answerable for deficiencies or involuntary losses. If you are being asked to take on a trusteeship, a legal consultation on what this protection does and does not cover can save worry later.
Subject to the instrument of trust and to sections 23 and 26, trustees are chargeable only for what they respectively actually receive, and are not answerable for one another, for any banker, broker or other person in whose hands trust property is placed, for the insufficiency or deficiency of any stocks, funds or securities, or otherwise for involuntary losses. The section prints no illustrations.
Scope of the Act
The Act deals with private trusts. Public, charitable and religious trusts are governed by other laws; see private trust vs public trust. Section 30 protects the trustee of a private trust.
The text
Section 30 reads: "Subject to the provisions of the instrument of trust and of Sections 23 and 26, trustees shall be respectively chargeable only for such moneys, stocks, funds and securities as they respectively actually receive, and shall not be answerable the one for the other of them, nor for any banker, broker or other person in whose hands any trust-property may be placed, nor for the insufficiency or deficiency of any stocks, funds or securities, nor otherwise for involuntary losses."
Limb by limb
| Phrase | Plain meaning |
|---|---|
| "chargeable only for such moneys ... as they respectively actually receive" | Each trustee accounts for what he himself received, not for what a co-trustee received |
| "not answerable the one for the other" | One trustee is not liable for the other's receipts or acts |
| "nor for any banker, broker or other person in whose hands any trust-property may be placed" | If trust property is placed with a third party and lost through that party, the trustee is not answerable |
| "nor for the insufficiency or deficiency of any stocks, funds or securities" | A fall in value or a shortfall in the investment is not charged to him |
| "nor otherwise for involuntary losses" | Losses that happen without his fault are outside his liability |
| "Subject to ... the instrument of trust and ... Sections 23 and 26" | The protection gives way to the deed and to the rules on breach of trust (s.23) and co-trustee liability (s.26) |
What the protection does not do
Because of the opening words, section 30 does not stand alone. Three limits are worth stating.
- It does not override section 23. A trustee who commits a breach of trust remains liable under section 23 to make good the loss (see our article on liability for breach of trust). A loss caused by a breach is not an "involuntary loss".
- It does not override section 26. Where the proviso to section 26 makes a trustee liable for a co-trustee's breach (for example, delivering trust property without seeing to its application), "not answerable the one for the other" does not protect him.
- It depends on the deed. "Subject to the provisions of the instrument of trust" means a deed can give more or less protection.
Section 30 also sits next to section 15. A trustee who deals with property as carefully as a man of ordinary prudence is not responsible for loss, and section 30 says similar things about bankers and brokers. In practice the care he took in choosing the banker or broker will matter; see our article on section 15, whose illustration (b) deals with a banker who became insolvent.
The Act's illustrations
None are printed under section 30 in our source, so none is restated here.
A modern example of our own
Kavita Iyer creates a family trust for her nephew's education, with two trustees, Vivek and Shalini. Vivek collects the rent and deposits it in a reputable bank. Shalini manages the mutual fund units.
- Vivek is "chargeable only for" the rent he actually received, not for the units that Shalini manages.
- The bank later suspends withdrawals and Rs 1.5 lakh of rent deposited there is stuck. Vivek chose a reputable bank and left the money there only until needed. Section 30 says he is not answerable for the banker, and it is also the kind of loss illustration (b) to section 15 describes.
- The mutual fund units fall in value. Section 30 says the trustee is not answerable for "the insufficiency or deficiency of any stocks, funds or securities", unless a breach (for example, investing in something the deed or the Act did not allow) is involved.
- Suppose instead Vivek handed the cheque book to Shalini and never looked at the statements, and she misused Rs 4 lakh. Section 26(a) and (b) can make him liable despite section 30, since section 30 is "subject to" section 26.
What the instrument of trust can change
The section opens with "Subject to the provisions of the instrument of trust". A deed can state that trustees are jointly responsible for certain acts, or can add protections. A deed that purports to excuse a breach of trust altogether is a matter for legal advice; section 30 does not say how far the deed may go.
Practical points
- Trustees: keep your own receipts and show what each of you received. Choose banks and brokers prudently and record why.
- Beneficiaries: a fall in market value is not, by itself, a breach. Look for a departure from the deed or from section 20 and the care standard.
- Settlors: consider stating in the deed which trustee is to hold which asset, and which trustees must sign together.
- Advisers: read section 30 together with sections 15, 23 and 26, and with the trustee's right to reimbursement under section 32, covered in our article on sections 31 and 32.
Need help understanding trustee protections?
If you are about to become a trustee, or a loss has occurred and you want to know whether section 30 protects you, our legal consultation service can review the deed and the facts. Bring the deed and the account statements.
Key takeaways
- Each trustee is chargeable only for what he actually receives.
- Trustees are not answerable for each other, or for a banker, broker or other person holding trust property, or for deficiencies and involuntary losses.
- This is subject to the deed and to sections 23 and 26.
- A loss caused by breach of trust is outside the protection.
Read next
- Sections 27-29: several liability of co-trustees, payment without notice and forfeiture
- Sections 31-32: trustee's right to title deeds and reimbursement of expenses
- Rights of trustees: reimbursement and indemnity
Disclaimer: Based on the text of the Indian Trusts Act, 1882 as consulted on 1 October 2026 from a scanned copy; the Act applies to private trusts, and public, charitable and religious trusts are governed by other laws. This article is general information, not legal advice; check the official text and take advice before acting.