Under the Indian Trusts Act, 1882, the remaining income of a minor must be:

Section 41 requires the trustee to "accumulate all the residue of such income by way of compound interest" by investing it in the securities referred to in s.20, for the person who ultimately becomes entitled to the property. The residue is not paid over to the guardian, kept idle in cash or shared out among other beneficiaries. The section also permits later application of accumulations as current-year income for the stated purposes; it does not require permanent retention regardless of need.