Sections 56 and 72 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.
Two sections of the Act deal with older law. Section 56 repeals named provisions of three other Acts, the Indian Trusts Act, 1882, the Code of Civil Procedure, 1908 and the Income-tax Act, 1961. Section 72 repeals the 1988 Ordinance that preceded the Act and saves what was done under it.
As per the consolidated text consulted, section 56(1) repeals sections 81, 82 and 94 of the Indian Trusts Act, 1882, section 66 of the Code of Civil Procedure, 1908 and section 281A of the Income-tax Act, 1961. Section 56(2) is a clarification about section 281A and the State of Jammu and Kashmir. Section 72(1) repeals the Benami Transactions (Prohibition of the Right to Recover Property) Ordinance, 1988, and section 72(2) says that anything done or action taken under the Ordinance is deemed to have been done or taken under the corresponding provisions of this Act.
How these sections came in
Section 56 is in Chapter VIII (Miscellaneous), inserted by the Benami Transactions (Prohibition) Amendment Act, 2016 in place of the old sections 7 and 8; the old section 7 carried the same list of repeals. Section 72 is the old section 9 renumbered as section 72 by section 11 of the amending Act, which is why the consolidated copy prints it as "[72]". Section 56 is checked against the Gazette of India copy of that Act (assent 10 August 2016); section 72 is not printed in full in the gazette, which only renumbers it, so its text here is from the consolidated copy. The 2016 changes were brought into force by notification; the date is not in the sources consulted.
If you are working out which older rule or section no longer applies to a trust, a civil dispute or an income-tax matter involving benami property, a legal consultation on the interaction of those laws will save time. Our overview of the Act's structure is in the article on sections 1, 60 and 67.
Section 56(1): what is repealed
"Sections 81, 82 and 94 of the Indian Trusts Act, 1882, section 66 of the Code of Civil Procedure, 1908 and section 281A of the Income-tax Act, 1961, are hereby repealed."
| Law | Provisions repealed |
|---|---|
| Indian Trusts Act, 1882 | Sections 81, 82 and 94 |
| Code of Civil Procedure, 1908 | Section 66 |
| Income-tax Act, 1961 | Section 281A |
The section names the provisions and does not describe what each said. The consolidated copy does not print their text, and this article does not describe it. The only thing the sources consulted add is the history: the Statement of Objects and Reasons of the 1988 Bill, printed after section 1 as history and not as law, says the 1988 Ordinance also repealed section 82 of the Indian Trusts Act, 1882, section 66 of the Code of Civil Procedure and section 281A of the Income-tax Act, 1961.
For the Trusts Act, our posts cover other provisions of the same Act: sections 80 to 83 of the Indian Trusts Act, 1882 (a range which takes in sections 81 and 82, named in section 56), sections 84 and 85 and sections 95 and 96. Section 56 of this Act is the authority for the repeal; those posts are about the Trusts Act, and the current text of that Act should be checked.
Section 56(2): Jammu and Kashmir
"For the removal of doubts, it is hereby declared that nothing in sub-section (1) shall affect the continued operation of section 281A of the Income-tax Act, 1961 in the State of Jammu and Kashmir."
This is quoted as printed. The sub-section sits next to a section 1(2) in which some words are dropped after "the whole of India", shown in the copy as "[***]". This article explains neither point. If either matters to your case, confirm the current legal position from the official text.
Section 72: repeal and saving
Section 72(1). "The Benami Transactions (Prohibition of the Right to Recover Property) Ordinance, 1988 (Ord. 2 of 1988), is hereby repealed."
Section 72(2). "Notwithstanding such repeal, anything done or any action taken under the said Ordinance shall be deemed to have been done or taken under the corresponding provisions of this Act."
The first sub-section repeals the Ordinance. The second is a saving clause: despite the repeal, what was done under the Ordinance is treated as done under the corresponding provisions of the Act. The Act itself, as section 1(3) says, treats the remaining provisions as deemed in force from 19 May 1988, and the Statement of Objects and Reasons records that the Ordinance was promulgated on that date; see our article on section 1.
Printing point. The copy prints the section number in square brackets as "[72]." and its text refers to the 1988 Ordinance, which is the unchanged old wording. The section number comes from the renumbering of the old section 9.
Why repeal and saving clauses matter
| Question | Where the answer sits |
|---|---|
| Which older provisions no longer apply? | Section 56(1) names them |
| Does an older provision still apply anywhere? | Section 56(2) speaks of section 281A of the Income-tax Act, 1961 in the State of Jammu and Kashmir |
| What happened to actions under the Ordinance? | Section 72(2): deemed done or taken under the corresponding provisions of the Act |
| Is the Ordinance itself still law? | Section 72(1) repeals it |
Who is affected
- Advisers and students, who need to know which provisions of the Trusts Act, the Code of Civil Procedure and the Income-tax Act were taken out by this Act.
- Persons whose rights arose before 2016, for whom the saving in section 72(2) and the commencement wording in section 1(3) are the relevant starting points.
- Trustees and beneficiaries, whose trust documents may refer to the Trusts Act provisions named in section 56(1).
Practical example
Advocate Ira Dutta is reading a trust deed prepared years ago that cites a section of the Indian Trusts Act, 1882 on trusts of a certain kind. She sees that section 56(1) of the benami Act repeals sections 81, 82 and 94 of that Act. She checks whether the citation in the deed is one of those three. If it is, she knows from section 56 that the provision is repealed, and she confirms the current text of the Trusts Act before advising the client. Separately, a client asks whether an action taken under the 1988 Ordinance still counts. Section 72(2) says anything done or action taken under the Ordinance is deemed to have been done or taken under the corresponding provisions of the Act.
Other laws and later amendments
Section 56 names the Indian Trusts Act, 1882, the Code of Civil Procedure, 1908 and the Income-tax Act, 1961, and section 72 names the 1988 Ordinance, all quoted as printed. Check the current income-tax, procedural and trust law for the corresponding provisions. Later amendments to the Act are not in the sources consulted; check them.
Need help with older laws and benami property?
When a trust, a pending civil matter or an income-tax proceeding touches benami property, it helps to know which older provisions have gone and which remain. Our legal consultation service can read the documents with you and map them against sections 56 and 72.
Key takeaways
- Section 56(1) repeals sections 81, 82 and 94 of the Indian Trusts Act, 1882, section 66 of the Code of Civil Procedure, 1908 and section 281A of the Income-tax Act, 1961.
- Section 56(2) is a clarification about section 281A and the State of Jammu and Kashmir, quoted as printed.
- Section 72(1) repeals the 1988 Ordinance.
- Section 72(2) saves actions under the Ordinance by treating them as done under the corresponding provisions of the Act.
- Section 72 is the old section 9 renumbered, which is why it prints as "[72]".
Read next
- Sections 1, 60 and 67: short title, commencement and overriding effect
- Section 4: no right to recover property held benami
- Sections 68 to 71: rules, removal of difficulties and transitional provision
- Sections 80 to 83 of the Indian Trusts Act, 1882
Disclaimer: Based on a third-party consolidated text of the Prohibition of Benami Property Transactions Act, 1988 as amended by the Benami Transactions (Prohibition) Amendment Act, 2016, checked against the Gazette of India copy of that amending Act (11 August 2016), as consulted on 2 October 2026. The commencement notification, the rules and later amendments should be checked. This article is general information, not legal advice; check the official text before acting.