The Indian Trusts (Amendment) Act, 2016

MINISTRY OF LAW AND JUSTICE
(Legislative Department)

New Delhi, the 27th July, 2016/Shravana 5, 1938 (Saka)

The following Act of Parliament received the assent of the President on the 26th July, 2016, and is hereby published for general information:—

THE INDIAN TRUSTS (AMENDMENT) ACT, 2016

(NO. 34 OF 2016)

[26th July, 2016.]

An Act further to amend the Indian Trusts Act, 1882.

BE it enacted by Parliament in the Sixty-seventh Year of the Republic of India as follows:—

1. (1) This Act may be called the Indian Trusts (Amendment) Act, 2016.

(2) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.

Substitution of new section for section 20.

2. For section 20 of the Indian Trusts Act, 1882 (2 of 1882) (hereinafter referred to as the principal  Act), the following section shall be substituted, namely:—

Investment of trust-money.

‘20. Where the trust-property consists of money and cannot be applied immediately or at an early date to the purposes of the trust, the trustee shall, subject to any direction contained in the instrument of trust, invest the money in any of the securities or class of securities expressly authorised by the instrument of trust or as specified by the Central Government, by notification in the Official Gazette:

Provided that where there is a person competent to contract and entitled in possession to receive the income of the trust-property for his life, or for any greater