Trust Registration in India

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SWARIT ADVISORS PVT LTD PRESENTS
TRUST REGISTRATION A Guide to Register Trust in
India
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This Guide Includes...
Topics to be Covered
Consultation On Process Information, search, and
filing of application Collection of documents
and filing with application. Guidance on
compliance
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OVERVIEW OF TRUST REGISTRATION
Trust Registration in India begins with the
drafting of a Trust Deed. Trust Deed is the
primary requirement in the process of Trust
Registration in India. Trust Deed is formed on a
non-judicial stamp paper every state in India
has fixed its own rate on the stamp duty. The
applicants are required to book an appointment
with the office of sub-registrar once he/she is
done with the preparation of Trust Deed. It is
essential for all the trustees of the Trust to
appear before the sub-registrar on the date of
appointment along with the Trust Deed and two
witnesses. Swarit Advisors Private Limited 2020
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WHAT IS A TRUST?
A Trust is an arrangement where owner or trust or
of Trust transfers the property to a trustee.
Such transfer of property is done for the benefit
of a third party. The property is transferred to
the trustee by the trust or along with a
proclamation that the property should be held by
the trustee for the beneficiaries of the
trust. The Indian Trust Act 1882, provides for
the provisions related to Trust in India. The
Trust Registration is advisable in India for
obtaining the benefits.
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PUBLIC TRUST
A Public Trust is the one whose beneficiaries
include the common public at large. Furthermore,
a Public Trust in India can be further
subdivided into Public Religious Trust and Public
Charitable Trust.
PRIVATE TRUST In India, a Private Trust is the
one whose beneficiaries include individuals or
families. Furthermore, a Private Trust in India
can be subdivided into the following
categories A Private Trusts whose beneficiaries
and requisite shares both can be easily
determined A Private Trusts whose both or either
the beneficiaries or requisite shares cannot be
easily determined.
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An NGO or a trust can acquire a 12A certificate
from the Income Tax Department of India. Thus, a
Trust acquiring such a certificate from the
Income Tax Department is exempted to pay income
tax for the entire lifetime on the surplus income.
WHAT ARE THE 12A AND 80G CERTIFICATES IN THE
PROCESS OF TRUST REGISTRATION IN INDIA?
Also, a Non-Governmental Organization is required
to obtain an 80G certificate. This 80G
Certificate allows donors, that is,
organizations or persons making donations to an
NGO that is 80G certified to avail a certain
deduction. Thus, such a deduction under 80G is
given to the donors under Section 80G of the
Income Tax Act of India.
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LEGISLATION GOVERNING TRUST REGISTRATION IN
INDIA
Presentations are communication tools that can be
used as demonstrations, lectures, speeches,
reports, and more. Further, a Trust can receive
projects and funds much like a Society. However,
it is sometimes quite challenging to get projects
and funds immediately after the Trust
Registration in India. Gets Registered. Hence,
to acquire projects or obtain funds, a Trust
needs to meet certain minimum eligibility
criteria. Such criteria may include the relevant
performance of a Trust, experience, age, and
other essential parameters. Furthermore, a
Public Charitable Trust in India has to be
registered with the office of the charity
commissioner who has jurisdiction over the
Public Trust.
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Benefits of Trust Registration
A LOTS OF BENEFITS ARE THERE...
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The primary reason behind creating a Trust in
India is to indulge in some charitable activities
and, at the same time, also avail the benefits
of tax exemption. These charitable trusts are
also called as Non-Profit Organizations. A
Trust formed in India has to be a legal entity if
it wants to avail of all the benefits associated
with the trust that are offered by the
government. The Federal Laws and the Indian Trust
Act makes it mandatory for all such entities to
get registered under the Charitable Trust. A
Trust Deed is very necessary to register a
charitable trust in India. Hence, a charitable
registration is also called a Trust Deed. The
State and Federal Law Departments in India give a
collection of assets to manage the common people
and charitable associations. This procedure of
collection of assets hugely helps those donors
who want to lend the assets to the trusts, making
the trustees fully expecting the receipt of tax
benefits.
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IMPORTANT THINGS CONSIDER BEFORE REGISTRATION
TRUST DEED Trust Registration in India cannot
be done without the most vital document called
the Trust Deed. The document also contains the
list of all its beneficiaries and narrates the
power of the trustees.
PRIVATE TRUST VS. PUBLIC TRUST Private Trusts
in India are governed and regulated by the
Indian Trusts Act, 1882.
NUMBER OF TRUSTEES No maximum limit is defined
for the total number of trustees for a Trust in
India. But at least two trustees are
essentially required at the time of Trust
Registration in India.
TAX BENEFIT After the Trust Registration
process in India, the public trusts can enjoy
the privileges offered by the government.
Public Trusts in India are also eligible to
avail of the tax exemption benefits.
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DOCUMENTS REQUIRED FOR TRUST REGISTRATION
TRUST DEED
ID PROOF OF THE SETTLER
IDENTITY PROOF OF EACH TRUSTEE
PAN CARD
IN INDIA
ADDRESS PROOF OF THE REGISTERED OFFICE
NOC SIGNED BY THE LANDOWNER.
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PROCESS OF TRUST REGISTRATION
PREPARATION SUBMISSION OF DEED
CHOOSE AN
DECIDE THE
FORMULATE MOA
CERTIFICATE OF
APPROPRIATE NAME
AUTHORS AND TRUSTEES
AND DEED
REGISTRATION
It contains the rules and regulations of the
Trust. This document also contains the laws
regarding the removal, changes, or addition of
the Trustees to the Trust.
After the submission of the Trust Deed with the
Registrar, the registrar will retain the
photocopy of the Deed and return the original
registered copy of the Trust Deed.
the name so suggested by the applicant should
not come under the restricted list of the
names as per the provisions of the Emblems and
Names Act, 1950
There is no specifically defined provision with
regards to the number of settlers or authors.
However, in most of the cases, there is
generally only one author of a Trust.
As a Trust, the applicant is required to
prepare the Trust Deed on a stamp paper and
submit the same along with properly attested
photocopies of all the necessary documents
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