Trust Registration in India

In India, majority of the Trusts are registered as public charitable trust a form of a non-profit entity. In simple words it is a transfer of property by the owner to another for the benefit of a third person along with or without himself or a declaration by the owner, to hold the property, not for himself and another.

Public Charitable Trusts are formed for several purposes, including social service, education, healthcare, provision of facilities for recreation, and any other object of general public welfare. In this article, we will learn about Trust Registration in India.

Types of Trust Creation

3 types of individuals who can create Trust are as follows:

• The trustor who declares the confidence
• A trustee who accept the confidence
• The beneficiary is the individual who avails benefits from the Trust.

Usually, the Trust Deed is the document that establishes the registration of the Trust and usually details items such as:

• Name of the Trust
• Place of office of the Trust
• Objects of the Trust
• Number of Trustees
• Term of the Trustees
• Trust Management
• Appointment or Resignation or Termination of Trustees
• Power, Function and Duties of the Trustees
• Application of Trust Property
• Other important matters

Trust Deed Registration

A Trust Deed should be performed on Stamp Paper of a suitable value and singed by the settlor and in the presence of two witnesses. Once the Trust Deed is executed, it can be registered with the Local Registrar. The Registrar would then register the Trust, retain a photocopy of the Trust Deed. While the original registered Trust Deed should be given to the settlor.

Document Required for Trust Registration

Following documents are required for filing online Form 10A –

1. Registration Certificate and MOA/Trust Deed
2. NOC
3. Copy of PAN card of Trust
4. Electricity Bill/ House Tax/ Water Bill
5. Progress report and welfare activities report should be given as a piece of evidence.
6. List of Members
7. List of the Donors with their PAN and address.
8. Trust Deed for verification

Online Trust Registration – Form 10A

As per notification no. 10/2018- Income Tax, an application, under Section 12A, Central Board of Direct Taxes or CBDT has substituted entire rule 17A which deals with the application for registration of charitable or religious trusts, etc. Under this article, we would look at the application procedure of trust after the implication of notification no. 10/2018-Income Tax.

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