Sections 58-59 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 58 lets the Central Government exempt property relating to charitable or religious trusts from the Act by notification. Section 59 lets it issue orders, instructions or directions to the authorities, with two limits that protect individual decisions and the discretion of the Adjudicating Authority.
As per the consolidated text consulted, the Central Government may, by notification, exempt any property relating to charitable or religious trusts from the operation of the Act, and each notification must be laid before each House of Parliament (section 58). It may also issue orders, instructions or directions to the authorities, or require any person to furnish information, but it cannot direct an authority to decide a particular case in a particular manner or interfere with the discretion of the Adjudicating Authority (section 59).
How these sections came in
Sections 58 and 59 are in Chapter VIII (Miscellaneous), inserted by the Benami Transactions (Prohibition) Amendment Act, 2016 as part of sections 56 to 71. The text is checked against the Gazette of India copy of that Act (assent 10 August 2016). The 2016 changes were brought into force by notification; the date is not in the sources consulted. Whether any exemption notification has been issued under section 58 is not in the sources consulted either.
If a trust holds property whose title history is unclear, or the trust has received a notice, a legal consultation on whether section 58 can matter to it should come before any reply. Section 58 is a power to exempt by notification, not an automatic exemption.
Section 58(1): exemption by notification
"The Central Government may, by notification, exempt any property relating to charitable or religious trusts from the operation of this Act."
Read the words closely.
- "May". The power is discretionary. No trust is exempt merely because it is charitable or religious; the exemption takes effect only if the Central Government notifies it.
- "By notification". A notification is a notification published in the Official Gazette (section 2(21)).
- "Any property relating to charitable or religious trusts". The words refer to property, not to the trust as such, and the property must "relate to" a charitable or religious trust. The Act does not define "charitable" or "religious" for this purpose.
- "From the operation of this Act". The exemption is from the Act as a whole, as the sub-section is worded.
Compare this with section 2(9)(A)(ii), which excepts from limb (A) of the definition of a benami transaction property held by a person in a fiduciary capacity, including a trustee, for the benefit of another. That exception is built into the definition; the section 58 exemption is a separate power to exempt property by notification. See our article on benami transaction, benamidar and beneficial owner. For how a trust is created under the Indian Trusts Act, 1882, see our post on section 6 of that Act; check the current text of that Act.
Section 58(2): laying before Parliament
"Every notification issued under sub-section (1) shall be laid before each House of Parliament." The text sets no period and no consequence for the laying, and this article states none.
Section 59(1): directions to the authorities
"The Central Government may, from time to time, issue such orders, instructions or directions to the authorities or require any person to furnish information as it may deem fit for the proper administration of this Act and such authorities and all other persons employed in execution of this Act shall observe and follow the orders, instructions and directions of the Central Government."
The sub-section has three parts. First, the Central Government may issue orders, instructions or directions to "the authorities", which are those in section 18(1): the Initiating Officer, the Approving Authority, the Administrator and the Adjudicating Authority. Second, it may "require any person to furnish information". Third, the authorities and all other persons employed in execution of the Act "shall observe and follow" them. The standard for issuing them is "as it may deem fit for the proper administration of this Act".
Section 59(2): criteria
In issuing the directions or orders, the Central Government "may have regard to anyone or more" of these criteria:
| Clause | Criterion |
|---|---|
| (a) | Territorial area |
| (b) | Classes of persons |
| (c) | Classes of cases |
| (d) | Any other criterion that may be specified by the Central Government in this behalf |
Directions can therefore be general, aimed at a region, a type of person or a kind of case. The text prints "anyone or more", which is read as "any one or more".
Section 59(3): limits on directions
"No orders, instructions or directions under sub-section (1) shall be issued so as to":
- (a) "require any authority to decide a particular case in a particular manner"; or
- (b) "interfere with the discretion of the Adjudicating Authority in the discharge of its functions".
These two limits matter. The Government may issue general directions, but not a direction that dictates the outcome of a particular case, and not one that interferes with the Adjudicating Authority's discretion in the discharge of its functions. The first limit applies to "any authority", so it covers all four authorities. The second names the Adjudicating Authority only. How the Adjudicating Authority decides cases is in section 26; see our article on section 26.
The Act's own statement of the powers of the authorities is in sections 18 to 20; see our article on sections 18 to 20. The text of section 59 does not say whether directions must be published, and this article states nothing on that point. The sources consulted do not contain any direction issued under section 59.
Sections 58 and 59 compared
| Point | Section 58 | Section 59 |
|---|---|---|
| Who acts | Central Government | Central Government |
| Instrument | Notification | Orders, instructions or directions |
| Subject | Property of charitable or religious trusts | Administration of the Act by the authorities |
| Parliament | Notification laid before each House | Not stated in the section |
| Limit | None stated in the section | No direction on a particular case or on the discretion of the Adjudicating Authority |
Who is affected
- Trustees and managers of charitable or religious trusts, who should check whether a notification covers their property rather than assume exemption.
- Persons appearing before the authorities, who should know that general directions can be issued but cannot decide their case.
- Advisers, who should check for notifications and directions in the official sources, since none is in the text consulted.
Practical example
The trustees of a religious trust in Varanasi hold a plot that was bought many years ago with funds given by a donor, and the title stands in the name of one trustee. A notice under section 24 names the plot. The trustees ask whether section 58 saves them. Section 58(1) lets the Central Government exempt property relating to charitable or religious trusts by notification. They have to find out whether a notification has been issued that covers this property; if none has, there is no exemption under the section. Separately, the trustees hear that the authority has been told by the Government how to treat trust cases. Section 59(3) says no direction can require an authority to decide a particular case in a particular manner or interfere with the Adjudicating Authority's discretion.
Other laws and later amendments
Section 58 refers to charitable or religious trusts without naming a statute. Check the current law on trusts and the current list of notifications. Later amendments to the Act are not in the sources consulted; check them.
Need help with a trust's property and the Act?
Whether a trust's property is covered by a notification, or whether a direction is being applied properly, depends on the notification and the facts. Our legal consultation team can review the trust papers and the notice and explain where the Act stands.
Key takeaways
- Section 58 lets the Central Government exempt property relating to charitable or religious trusts from the Act by notification; the exemption is not automatic.
- Each notification under section 58 is laid before each House of Parliament.
- Section 59 lets the Government issue orders, instructions or directions to the authorities and require information.
- Directions may have regard to territorial area, classes of persons, classes of cases and other criteria.
- A direction cannot require an authority to decide a case in a particular manner or interfere with the discretion of the Adjudicating Authority.
Read next
- Sections 56 and 72: repeal and saving
- Sections 64 to 66: good-faith protection, pending cases and legal representatives
- Section 26: adjudication of benami property
- Section 6 of the Indian Trusts Act, 1882: how a trust is created
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.