Trust Registration
Get Started – From Rs. 6,500/- (Trust Reg), Rs. 25,000/- (12A & 80G Reg)
A Trust is the obligation or responsibility placed on one in whom confidence or authority is place; it is a confidence reposed in a person by conveying to him the legal title to property which he is to hold for the benefit of others.
A Trust, as defined by The Indian Trusts Act, 1882, is an obligation annexed to the ownership of property, and arising out of a confidence reposed in and accepted by the owner, or declared and accepted by him, for the benefit of another, or of another and the owner.
- The person who reposes or declares the confidence is called the “Author of the Trust”.
- The person who accepts the confidence is called the “Trustee”.
- The person for whose benefit the confidence is accepted is called the “Beneficiary”.
- The subject-matter of the trust is called “Trust Property” or “Trust Money”.
- The instrument if any, by which the Trust is declared, is called the Trust Deed.
ESSENTIAL FEATURES FOR FORMATION OF CHARITABLE TRUST:
- An Author or Settlor of the Trust
- The Trustee
- The Beneficiary
- The Trust Property or the Subject Matter of the Trust
- The objects of the Trust
REASONS FOR FORMATION OF CHARITABLE TRUST:
- Discharge of the Charitable sentiments of the Author, in a way that ensures public benefit.
- For claiming exemption from Income Tax, as the case may be, in respect of incomes applied to charitable purposes.
- For the proper management and preservation of property.
- For regulating the affairs of a provident fund, superannuation fund or gratuity fund or any other fund constituted by a person for the welfare of its employees.
TRUST REGISTRATION:
Trust registration is created with a document named Trust deed. Trust deed consists of objects of the trust, Operation of Trust, Trustee information, Trustee powers, rights, duties and liabilities. The trust deed should clearly spell out the aims and objects of the trust, how the trust should be managed, how other trustees may be appointed or removed, etc. The trust deed should be signed by both the Author/s and trustee/s in the presence of two witnesses. The Deed should be executed on non-judicial stamp paper, the value of which would depend on the valuation of the Charitable Trust property. The application for registration should be made to the official having jurisdiction over the region in which the trust is sought to be registered. The Author and at least one witness must be physically present at concerned Registrar’s Office.
12A – TAX EXEMPTION:
Charitable Trusts are exempt from Income Tax. However, this is not automatic. One needs to apply to Income Tax Office to get the exemption from tax on trust’s income under section 12A. Income of a Trust is exempted only if the Trust has 12-A registration. All income shall not be taxable after 12-A registration. This is one time registration. If the Trust is not registered, income tax is payable on surplus during the year.
BENEFITS OF 12A REGISTRATION:-
- Income will be exempted for taxation.
- Benefits in taking grants from Government and other agencies.
- Benefit in FCRA registration.
80G – TAX EXEMPTION:
Registration under section 80G of Income Tax Act provides benefit to Charitable Trust. If an Trust gets itself registered under section 80G then the person or the organization making a donation to the Charitable Trust will get a deduction of 50% from his/its taxable income. By availing 80G Certificate, NGO can attract more donors. This approval needs to granted or rejected within 6 months from the date of applying for the same.
DOCUMENTS REQUIRED:- (Should be self attested)
- Copy of PAN card of the Members.
- Copy of Voter’s ID/ Passport/Driver’s License/Aadhar Card of the Members (any 2).
- Passport sized photograph of the Members (4 Photos).
For 12A & 80G registration:
- Two Copies of Trust Deed (Notarized).
- Copy of Trust PAN.
- Copy of Rental agreement of office address.
- Copy of latest electricity bill and tax receipt in the name of landlord of office address.
- NOC From Landlord.
Trust Registration
Get Started – From Rs. 6,500/- (Trust Reg)
– From Rs. 25,000/- (12A & 80G)
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