Section 66 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 66 of the Rajasthan Public Trusts Act, 1959 deals with dharmada, the amount charged in a trade or business transaction in Rajasthan for a charitable or religious purpose. The amount vests in the person who charges or collects it as a trustee, is used as a committee of traders directs, and must be accounted for each year.
This article explains section 66 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.
Where, by the custom or usage of a business or trade, or by agreement between the parties, an amount is charged to a party to a transaction, or collected under any name, as intended for a charitable or religious purpose, it is called dharmada and vests in the person charging or collecting it as a trustee (section 66(1)). It is used as directed by a committee elected by the persons engaged in the trade or business (section 66(2)). The person collecting it submits an account each year in the prescribed form (section 66(3)), the Assistant Commissioner may inquire to verify it on the committee's request (section 66(4)), and Chapter V does not apply to dharmada (section 66(5)). Chapter XI comes into force only by special notification under section 1(6).
The notification point
Chapter XI, which contains only section 66, comes into force on the date fixed by special notification in the official Gazette, and the State Government may fix different dates for different cities and towns "having regard to the population", as section 1(6) provides. The notifications are not part of the text consulted, so no city or town is named here. A trader or trade association should find out whether a special notification covers its town before applying this section. Our books of accounts compliance team can set up the separate dharmada account the section calls for.
Dharmada is a public trust
The definition of "public trust" in section 2 says it includes a temple, a math, dharmada or any other religious or charitable endowment or institution. So dharmada is not a side topic; it is expressly within the Act's idea of a public trust, though Chapter V on registration does not apply to it.
Sub-section (1): what dharmada is and who holds it
The sub-section covers an amount charged to any party to a transaction, or collected under whatever name, "as being intended to be used for a charitable or religious purpose". The source may be:
- the custom or usage of a business or trade; or
- an agreement between the parties relating to the transaction.
That amount, "in Act called Dharmada", vests in the person charging or collecting it as a trustee. The result is that a trader, commission agent or firm that adds a charitable charge to its bills does not own the money; it holds it as a trustee for the charitable or religious purpose. The words of the section do not name particular trades or rates, and none is stated here.
Sub-section (2): use of the amount
The amount charged or collected shall be used "in such manner as may be directed by a Committee consisting of members elected in the prescribed manner by persons engaged in the trade or business concerned". The committee is made of members elected by the traders themselves, not appointed by the State Government. The manner of election is prescribed.
Sub-section (3): the annual account
Every person charging or collecting dharmada shall, within the period prescribed from the close of the year for which his accounts are ordinarily kept, submit an account of the dharmada charged or collected during that year, in the prescribed form, either:
- to the Assistant Commissioner having jurisdiction; or
- to the committee under sub-section (2),
"as the State Government may by general or special order direct". The year is the accounting year in which that person ordinarily keeps his accounts. The period and form are in the Rules; see our article on rules 40 to 42 of the Rajasthan Public Trust Rules, 1962, which covers the dharmada statement, inquiry and audit.
Sub-section (4): inquiry
The Assistant Commissioner has power, "upon a request made in that behalf by a Committee", to make such inquiry as he thinks fit to verify the correctness of the accounts submitted to him or to the committee under sub-section (3). The power is triggered by the committee's request, not by the Assistant Commissioner's own motion.
Sub-section (5): Chapter V does not apply
"The provisions of Chapter V shall not apply to Dharmada." So the trust-registration route of sections 16 to 29, including the application in section 17 and the bar in section 29, is not the compliance route for dharmada. The compliance route is the committee, the annual account and the inquiry in section 66 itself.
Summary table
| Sub-section | Subject | Key words |
|---|---|---|
| (1) | What dharmada is | Charged or collected under any name for a charitable or religious purpose, by custom, usage or agreement; vests in the person charging or collecting it as trustee |
| (2) | Use | As directed by a committee elected by persons in the trade or business |
| (3) | Account | Annually, in the prescribed form, to the Assistant Commissioner or the committee as the State Government directs |
| (4) | Inquiry | By the Assistant Commissioner on the committee's request, to verify accounts |
| (5) | Registration | Chapter V does not apply |
Penalty
Section 70 of the Act deals with penalties, including for contravention of sub-sections (1), (2) and (5) of section 66. The fines are covered in our article on sections 67 to 70, and no figure is stated here.
Maharashtra's dharmada rule
The Maharashtra Public Trusts Act, 1950 has a section on dharmada collected in a business or trade; see our article on section 54 of the Maharashtra Public Trusts Act, 1950. The Rajasthan rule explained here applies in Rajasthan only.
Worked example
An invented grain merchants' association in Kota has a custom that every sale in the mandi carries a small charge named "dharmada", which is meant for a gaushala and temple repairs. Under section 66(1) (once Chapter XI has been brought into force for Kota by special notification), the amount vests in each merchant who collects it, as trustee. The merchants elect a committee in the prescribed manner, and the committee directs how the money is spent. Each merchant files an account for his accounting year in the prescribed form with the Assistant Commissioner or the committee, as the State Government directs. If the committee doubts a merchant's account, it can ask the Assistant Commissioner to inquire.
Practical points
- Keep dharmada in a separate account from the business's own money.
- Record each receipt under the name used on the bill.
- File the account in the prescribed form and period with the body the State Government has directed.
- Form the trade committee in the prescribed manner before spending.
- Do not register dharmada under Chapter V.
Need help with dharmada accounts?
Traders who collect dharmada hold it as trustees and must account for it. Our team can set up a separate ledger, prepare the annual statement and help the trade committee keep its records. Talk to us about books of accounts compliance for dharmada.
Key takeaways
- Dharmada is an amount charged or collected in trade or business for a charitable or religious purpose, by custom, usage or agreement.
- It vests in the person charging or collecting it as a trustee.
- A committee elected by persons in the trade or business directs its use.
- An annual account goes to the Assistant Commissioner or the committee, as the State Government directs.
- The Assistant Commissioner may inquire into the accounts on the committee's request.
- Chapter V does not apply to dharmada, and Chapter XI starts only by special notification under section 1(6).
Read next
- Rules 40 to 42 of the Rajasthan Public Trust Rules, 1962: dharmada statement, inquiry and appeals
- Section 54 of the Maharashtra Public Trusts Act, 1950: dharmada in business and trade
- Sections 67 to 70 of the Rajasthan Public Trusts Act, 1959: procedure and penalties
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.