Section 58 of the Prohibition of Benami Property Transactions Act: Exemption for Charitable or Religious Trust Property

Section 58 empowers the Central Government to exempt, by notification, property relating to charitable or religious trusts from the operation of the Prohibition of Benami Property Transactions Act, 1988. The provision also requires every such notification to be laid before each House of Parliament.

Section 58 - Exemption

Meaning and Scope of Section 58

Section 58 creates a specific statutory power of exemption. It does not state that all property owned, held or used by every charitable or religious trust is automatically outside the Act. The exemption operates through a notification issued by the Central Government.

The phrase "property relating to charitable or religious trusts" identifies the class of property for which the Central Government may exercise the exemption power. Whether a particular property is covered depends on the terms and scope of the applicable notification and the facts relating to that property.

Key Requirements Under Section 58

• Competent authority: The power is vested in the Central Government.
• Mode of exemption: The exemption must be granted by notification.
• Eligible subject matter: The property must relate to charitable or religious trusts.
• Effect: A valid notification may exempt the specified property from the operation of the Act to the extent stated in the notification.
• Parliamentary control: Every notification issued under Section 58(1) must be laid before each House of Parliament.

Is the Exemption Automatic?

No. Section 58 uses the words "may, by notification, exempt". Accordingly, the statutory text contemplates an exemption arising from a Central Government notification rather than merely from the charitable or religious character of a trust.

Why the Parliamentary Laying Requirement Matters

Sub-section (2) requires each exemption notification to be laid before both Houses of Parliament. This provides legislative oversight over the exercise of the exemption power while leaving the initial decision to issue a notification with the Central Government.

Official Legal Source

For the latest consolidated text, amendments and statutory context, readers should verify the provision from the official India Code text of the Prohibition of Benami Property Transactions Act, 1988. Official notifications may also be checked on the e-Gazette of India.

Related Provisions

Section 58 appears in Chapter VIII, "Miscellaneous". Nearby provisions deal with certain transfers after notice, directions by the Central Government and the application of other laws. See the related section links in the sidebar for continuity.

Last reviewed: 14 September 2026. This page is an informational summary; the official statutory text and applicable notifications should be consulted for legal use.