Hello @Sharad Sir, I am currently drafting a Trust Deed for a non-profit organization and would appreciate your guidance regarding the Income Tax provisions that should be referred to in the deed.
Specifically, I would like to know whether we should continue referring to the provisions of the Income Tax Act, 1961 or whether references should now be updated to the Income Tax Act, 2025, particularly for the following clauses:
1. Investment Clause
Example:
“The funds of the Trust shall be invested or deposited only in the modes specified under Section 11(5) read with Section 13(1)(d) of the Income Tax Act, 1961, as amended from time to time.”
2. Irrevocability / Amendment to the Trust Clause
Example:
“No amendment to this Trust Deed shall be made which is inconsistent with or repugnant to the provisions of Sections 2(15), 11, 12, 13 and 80G of the Income Tax Act, 1961, as amended from time to time.”
Could you please review these clauses and advise which Act and corresponding provisions should be referred to in a trust deed being executed after April 2026?
Additionally, if you have any sample trust deed or updated drafting precedents prepared after April 2026 that incorporate the new Income Tax law provisions, I would be grateful if you could share them.
Thank you for your guidance and assistance.