Sections 32 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.
Sections 32 to 34 of the Rajasthan Public Trusts Act, 1959 set the accounting cycle of a registered public trust in Rajasthan. The working trustee keeps regular accounts, the accounts are balanced every 31 March and audited each year by a chartered accountant, and the auditor sends a balance sheet, an income and expenditure account and a report on irregularities to the Assistant Commissioner.
This article explains sections 32 to 34 of the Rajasthan Public Trusts Act, 1959 (Rajasthan Act 42 of 1959) as amended up to the date of the English text published by the Devasthan Department, Government of Rajasthan, consulted on 3 October 2026; that copy does not state the date of its last amendment. Check the current text with the State's Devasthan Department before relying on it.
The working trustee or manager of a registered public trust must keep regular accounts of all movable and immovable properties in the prescribed form (section 32). Accounts are balanced each year on 31 March (or another day fixed by the Commissioner) and audited annually by a chartered accountant, a firm of practising chartered accountants, or persons authorised by the State Government (section 33). The Assistant Commissioner may direct a special audit (section 33(4)-(5)). The auditor prepares a balance sheet and income and expenditure account, and reports irregularities, illegal or improper expenditure, losses and breaches of trust (section 34). Chapter VII applies only to classes notified under section 1(4).
The notification point
Sections 32 to 34 belong to Chapter VII, which comes into force only for the class or classes of public trusts notified under section 1(4). The notifications are not part of the text consulted, so no class of trusts is named. A trust whose books need to be brought to the standard these sections expect can use our books of accounts compliance service.
Section 32: maintenance of accounts
"The working trustee or manager of a public trust which has been registered under this Act shall keep regular accounts of all movable and immovable properties of the trust." The form of accounts and the particulars to be entered are as prescribed or, in so far as not prescribed, as approved by the Assistant Commissioner. The duty is tied to registration under the Act. The form is a matter for the rules; see our article on rules 26 to 30 of the Rajasthan Public Trust Rules, 1962.
Section 33: balancing and auditing
| Sub-section | Rule as printed |
|---|---|
| (1) | Accounts kept under section 32 are balanced each year on 31 March, or on another day fixed by the Commissioner. |
| (2) | Accounts are audited annually in the prescribed manner by a Chartered Accountant within the meaning of the Chartered Accountants Act, 1949, or by a firm of which all partners are practising in India as chartered accountants, or by persons authorised by the State Government. |
| (3) | The auditor has access to the accounts and to all books, vouchers, other documents and records in the possession or control of the working trustee or manager, who must provide all facilities. |
| (4) | The Assistant Commissioner may direct a special audit whenever he thinks it necessary; sub-sections (2) and (3) apply so far as applicable. |
| (5) | The Assistant Commissioner may direct payment of a prescribed fee for the special audit, and the working trustee or manager is liable to pay it from the trust property. |
Three practical points follow. The year-end is 31 March unless the Commissioner fixes another day. The auditor must be one of three kinds of person named in sub-section (2). The special audit fee is "such fee as may be prescribed", so no amount is stated in the Act, and none is stated here. The Chartered Accountants Act, 1949 is an older Central law quoted as printed; check its current text before relying on the reference.
Section 34: the auditor's duty
Sub-section (1). Every auditor auditing the accounts of a public trust under section 33 has a duty to "prepare a balance sheet and income and expenditure accounts" and forward a copy to the Assistant Commissioner within whose jurisdiction the trust is registered. The statements go to the registering officer under section 16, not to the trust alone.
Sub-section (2). The auditor shall, in his report, specify all cases of:
- irregularities;
- illegal or improper expenditure;
- failure or omission to recover moneys or other property belonging to the trust; and
- loss or waste of money or other property,
and state whether such expenditure, failure, omission, loss or waste was caused in consequence of a breach of trust, misapplication or other misconduct on the part of the trustee or any other person.
This is a broad reporting duty. It asks the auditor to say not only what went wrong but whether misconduct caused it. The auditor's report feeds the Assistant Commissioner's power under section 49 to ask for an explanation and, after an inquiry, to determine a loss and a surcharge; see our article on sections 47 to 49.
How the three sections link up
| Step | Who | Section |
|---|---|---|
| Keep regular accounts | Working trustee or manager | 32 |
| Balance the books at year-end | Working trustee or manager | 33(1) |
| Audit annually | A chartered accountant, a firm of chartered accountants or a person authorised by the State Government | 33(2) |
| Give access and facilities | Working trustee or manager | 33(3) |
| Special audit, if directed | Assistant Commissioner | 33(4) and (5) |
| Balance sheet, income and expenditure account and report | Auditor to the Assistant Commissioner | 34 |
The budget, the balance sheet, the income and expenditure accounts and the audit report are open to inspection by a person having interest under section 36; see sections 35 and 36.
Worked example
An invented trust, Shri Mahaveer Vidyalaya Trust, Kota, is registered and covered by a notification applying Chapter VII. Its working trustee, Mr Arvind Jain, keeps accounts of the school building, bank deposits and fixed assets. After 31 March, the accounts are audited by a firm of practising chartered accountants. The auditor sends the balance sheet and the income and expenditure account to the Assistant Commissioner and notes in the report an expense that lacks any voucher and a rent that was never collected. He states whether each was caused by misapplication or misconduct. Later, the Assistant Commissioner, thinking the audit inadequate, directs a special audit and a fee payable from the trust property.
What the sections do not say
- The Act does not set a date by which the audit must be completed or the report delivered; those are matters for the Rules.
- It does not state a penalty for failing to keep accounts; the general penalty is in section 70.
- It does not say what income-tax audit may also apply; see our income-tax guides.
Need help with trust accounts and audit?
Clean accounts, a year-end close and a complete audit file protect trustees when the Assistant Commissioner calls for the report. Our team can maintain or review the books of a trust in Rajasthan and prepare them for the auditor. Talk to us about books of accounts compliance for your trust.
Key takeaways
- A registered public trust must keep regular accounts of all movable and immovable properties.
- Accounts are balanced on 31 March, or another day fixed by the Commissioner, and audited every year.
- The auditor must be a chartered accountant, a firm of practising chartered accountants or a person authorised by the State Government.
- The Assistant Commissioner can direct a special audit, with a prescribed fee payable from trust property.
- The auditor sends a balance sheet, an income and expenditure account and a report on irregularities to the Assistant Commissioner.
- Chapter VII applies only to classes notified under section 1(4).
Read next
- Sections 35 and 36 of the Rajasthan Public Trusts Act, 1959: budget, inspection and copies
- Rules 26 to 30 of the Rajasthan Public Trust Rules, 1962: accounts and audit
- Sections 47 to 49 of the Rajasthan Public Trusts Act, 1959: returns, inspection and explanation
Disclaimer: Based on the English text of the Rajasthan Public Trusts Act, 1959 published by the Devasthan Department, Government of Rajasthan, as consulted on 3 October 2026; that copy does not state the date of its last amendment. Later amendments, State notifications and current fees should be checked with the State authorities. This article is general information, not legal advice; check the official text before acting.