Section 31A 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.
This article explains the Maharashtra Public Trusts Act, 1950 as it applies in the State of Maharashtra, formerly the Bombay Public Trusts Act, 1950. Section 31A requires the trustee of a public trust whose annual income exceeds a prescribed amount to prepare and submit a budget of probable receipts and disbursements to the Charity Commissioner at least one month before each accounting year begins, and says what the budget must provide for.
This article explains section 31A as amended up to Maharashtra Act No. XXXVI of 2018 (in force 21 May 2018), per the official text of the Law and Judiciary Department modified up to 19 December 2018. Maharashtra amended the Act again in 2019, 2020, 2024 and 2025; the amending texts consulted do not change this section, but the current text should be checked on the Charity Commissioner's website before relying on it.
A trustee of a public trust whose annual income exceeds the prescribed amount must, at least one month before the commencement of each accounting year, prepare and submit a budget of probable receipts and disbursements for the following year to the Charity Commissioner, in the form prescribed (s.31A(1)). The budget must make adequate provision for carrying out the objects of the trust and for the maintenance and preservation of the trust property (s.31A(2)).
Origin and placement
Section 31A was inserted by Mah. 20 of 1971, s. 18, and the heading of Chapter V was changed from "Accounts and audit" to "Budget, accounts and audit" by s. 17 of that Act, as the footnotes print. The Chapter now reads in this order: budget (section 31A), maintenance of accounts (section 32, not set out in this article), balancing and audit (section 33) and the auditor's duties (section 34).
Sub-section (1): who, when, what, to whom
| Question | Words of the section |
|---|---|
| Who | "A trustee of a public trust which has an annual income exceeding the prescribed amount" |
| What | "prepare and submit in such form or forms as may be prescribed, a budget showing the probable receipts and disbursements of the trust during the following year" |
| When | "at least one month before the commencement of each accounting year" |
| To whom | "to the Charity Commissioner" |
The threshold. The section does not print the amount. It says "the prescribed amount", which is set by the rules. This article states no amount; check the current Maharashtra Public Trusts Rules for the figure that applies now. A trust that is below the prescribed amount is outside this section; a trust that crosses it must start preparing a budget for the next accounting year.
The form. The form is "such form or forms as may be prescribed". The rules, not the Act, set it; this article describes none.
The timing. The section says "at least one month before the commencement of each accounting year". The accounts of a public trust are balanced each year on the thirty-first day of March or such other day as the Charity Commissioner fixes (see Section 33), so the accounting year is tied to that day. The section says "at least" one month, so submitting earlier is within it. It prints no separate consequence of lateness, and this article does not suggest one.
Who files. The section speaks of "a trustee" and does not name which one. Trustees who want help preparing the figures can use financial statement preparation support.
Sub-section (2): what the budget must provide for
"Every such budget shall make adequate provision for carrying out the objects of the trust, and for the maintenance and preservation of the trust property." Two heads, therefore:
- Objects. The budget should show money set aside for the purposes in the trust's objects clause (for instance, scholarships, medical relief, worship, or running a hostel).
- Property. It should show money for upkeep and preservation of the trust property: repairs, insurance where the trust buys it, security and similar costs.
The word "adequate" is not defined. A budget that spends all the income on administration, or that leaves nothing for repairs of a building the trust depends on, invites the question whether it makes adequate provision. The section does not say who judges adequacy; the Charity Commissioner receives the budget, and his powers of direction are dealt with elsewhere, for example Section 41A.
Illustration. A temple trust in Nashik has an annual income above the prescribed amount. Its accounting year begins on 1 April. In the previous year's accounts the trustees see income from donations, rent and interest. In their budget for the next year, they estimate probable receipts under those heads, then list disbursements: daily worship, a festival, a meal service run by volunteers (shown at cost), staff pay, repairs to the shikhar, and insurance. They sign the budget in the prescribed form and submit it to the Charity Commissioner at least one month before 1 April.
A planning table
| Month | Trustee task |
|---|---|
| Before the accounting year ends | Estimate receipts and disbursements for the following year |
| At least one month before the next accounting year starts | Submit the budget in the prescribed form to the Charity Commissioner |
| During the year | Keep spending in line with the budget; record variances |
| After the year | Balance accounts (section 33) and have them audited |
For accounts and audit, read Section 33 and Section 34. For how to file annual accounts in practice, see how to file annual accounts of a trust with the Charity Commissioner.
Need help preparing the budget and statements?
Our team can prepare the budget, the accounts and the year-end statements for a public trust in a form the Charity Commissioner's office expects. Reach out about financial statement preparation.
Key takeaways
- Section 31A applies to a trustee of a public trust whose annual income exceeds the prescribed amount; the Act prints no amount.
- The budget of probable receipts and disbursements for the following year goes to the Charity Commissioner at least one month before the accounting year begins.
- It must be in the prescribed form.
- It must make adequate provision for the objects and for maintenance and preservation of the trust property.
- Section 31A was inserted by Mah. 20 of 1971.
Read next
- Section 33: balancing and audit of trust accounts
- Section 34: the auditor's duty, balance sheet and reporting irregularities
- How to file annual accounts of a trust with the Charity Commissioner
- Section 41A: directions for proper administration of a trust
Disclaimer: Based on the Maharashtra Public Trusts Act, 1950 as modified up to 19 December 2018 in the official text of the Law and Judiciary Department, Government of Maharashtra, as consulted on 3 October 2026. Maharashtra amended the Act again in 2019, 2020, 2024 and 2025; the current text, the Maharashtra Public Trusts Rules and the Charity Commissioner's circulars should be checked. This article is general information, not legal advice; check the official text before acting.