Trust Registration
Unlock effortless Trust registrations in Vadodara with our professional guidance. Our experienced team is here to provide tailored solutions, guaranteeing your Trust meets all legal requirements for a prosperous future.
Process for Trust Registration
Step 1: Consultation and Document Collection
- Seek expert advice to understand the trust registration process.
- Choose a unique name for the trust and gather trust-related details.
- Collect necessary documents, including identity proofs and address proofs of trustees.
Step 2: Trust Deed Drafting
- Legal experts draft a trust deed in accordance with Indian Trusts Act and state regulations.
- Customize the trust deed to reflect the trust’s objectives and intentions.
Step 3: Application Submission
- Submit the completed trust deed and required documents to the appropriate authorities.
Step 4: Verification and Follow-Up
- Address any queries or additional requirements that may arise during the verification process.
Step 5: Registration and Certification
- Upon approval, receive the trust registration certificate from the Sub-Registrar’s office.
Step 6: PAN and Bank Account Setup (Optional)
- If needed, apply for a Permanent Account Number (PAN) for the trust.
- Open a bank account for the trust using the registration certificate.
Benefits of Trust Registration
Trust registration is the process of officially registering a trust under the Trusts Act of 1882. This legal step ensures that the trust is recognized and operates within the framework of the law. Registering a trust provides legal validity and establishes its existence as a separate entity. Some of the benefits of trust registration are:
Protect the Rights and Interests :
It helps to protect the rights and interests of the beneficiaries and the trustees.
Avoid any Disputes or Conflicts :
It helps to avoid any disputes or conflicts among the settlors, trustees, and beneficiaries in the future.
Avail various tax Benefits and Exemptions :
It helps to avail various tax benefits and exemptions available for trusts under the Income Tax Act, 1961 and other laws.
Obtain Loans, Grants, Donations :
It helps to obtain loans, grants, donations, and other financial assistance from various sources for the trust activities.
Understanding section 12A and 80G
Section 12A and Section 80G of the Income Tax Act, 1961, are provisions related to tax exemptions for charitable and religious institutions in India.
Section 12A :
- This section deals with the registration of trusts and institutions for availing tax exemptions.
- It provides for the conditions and procedure for registration of trusts, including charitable trusts, religious trusts, etc., with the Income Tax Department.
- Organizations that are registered under Section 12A are eligible to claim exemptions on their income derived from property held for charitable or religious purposes.
- Such organizations must apply for registration within a certain timeframe from the date of creation of the trust or institution.
Section 80G :
- This section provides tax benefits to donors who contribute to charitable organizations.
- Donations made to institutions, trusts, or funds registered under Section 80G are eligible for deduction from the donor’s taxable income.
- The amount of deduction varies depending on the type of institution and the percentage specified under Section 80G.
- However, there are certain limits and conditions for claiming deductions under this section, such as maximum eligible donation amount, mode of payment, etc.
- It’s important for the charitable organizations to maintain proper documentation and comply with the requirements of Section 80G to ensure that donors can avail of tax benefits.
Eligibility Criteria for Trust Registration
Who are Eligible to Form a Trust?
- Charitable intent for social welfare.
- Minimum of two eligible trustees.
- Trustees must be of sound mind and legal capacity.
- Trustees should be adults, typically 18 years or older.
- No criminal background for trustees.
- At least one trustee residing within state.
- Genuine and non-profit objectives.
Benefits of a Written Trust Deed
- Prima Facie evidence of existance of a trust.
- Facilitates devolution of trust Property to the trust
- Clearly Specifies the Objectives and Duration.
- Essential for claiming benefits under Income Tax Act
- Specify procedures for appointing successor trustees
- Protect assets from misuse or unauthorized disposition.
