Trust Registration Requirements, Procedure and Fees
Trust Registration Fees @Rs.11,999/-Only and time period one month approx.
Call us at 8755017503
100% Approval
100% Online Process
Money back guarantee
Trustworthy Guidance
Trust Registration website
What is Trust Registration- Trust are registered under Indian trust act,1882. this act define how trust will be formed and rules and regulation of trustee.
Why Trust Registration is required- If some want to start educational activity like opening of school, college institute, computer institute, techincal university and want to start charitable activities, religious activity then formation of trust is required.
Documents Required for Trust Registration-Registering a trust involves providing a set of essential documents to the relevant authorities. While specific requirements can vary slightly depending on the state and jurisdiction, here’s a general overview of the documents typically needed for trust registration in India:
Key Documents:
- Trust Deed:
- This is the most crucial document. It outlines the trust’s objectives, the trustees’ roles, the beneficiaries, and the rules governing the trust’s operation. It must be prepared on appropriate stamp paper.
- Identity Proof:
- Valid identity proof for the trustor (settlor) and all trustees. Examples include:
- Aadhaar Card
- PAN Card
- Passport
- Voter ID
- Drivers license.
- Valid identity proof for the trustor (settlor) and all trustees. Examples include:
- Address Proof:
- Address proof for the trustor, trustees, and the trust’s registered office. This can include:
- Utility bills (electricity, water, etc.)
- Property ownership documents
- Rental agreement (if applicable)
- Address proof for the trustor, trustees, and the trust’s registered office. This can include:
- PAN Cards:
- PAN cards of all individuals involved (trustor and trustees).
- PAN card of the trust itself.
- Photographs:
- Passport-sized photographs of the trustor and trustees.
- No Objection Certificate (NOC):
- If the trust’s registered office is in a rented property, an NOC from the property owner is usually required.
- Registered Office Address Proof:
- Documents that verify the address of the trusts registered office.
- Memorandum of Association (MOA):
- This document outlines the objectives and purpose of the trust.
Additional Considerations:
- Stamp Duty: The trust deed must be executed on stamp paper of the appropriate value, which varies from state to state.
- 12A and 80G Certificates: If the trust intends to claim tax exemptions, it will need to apply for registration under Sections 12A and 80G of the Income Tax Act.
- It is always advisable to consult with a legal professional to ensure that all necessary documents are prepared and submitted correctly.
Proceudre to obtain Trust Registration –
The procedure to obtain trust registration in India generally involves these key steps:
1. Drafting the Trust Deed:
- This is the foundational document. It should clearly define:
- The trust’s name and objectives.
- The names and details of the trustor (settlor), trustees, and beneficiaries.
- The trust’s property and how it will be managed.
- The rules and regulations governing the trust’s operation.
- It must be drafted on appropriate non-judicial stamp paper, the value of which varies by state.
2. Selecting the Trustees:
- A minimum of two trustees is usually required.
- Trustees should be individuals of sound mind and not legally disqualified.
3. Preparing the Required Documents:
- Gather all necessary documents, including:
- Trust deed.
- Identity and address proof of the trustor and trustees.
- PAN cards.
- Photographs.
- Address proof of the registered office.
- NOC from property owner if the office is rented.
4. Submitting the Documents to the Registrar:
- Submit the trust deed and other required documents to the local Registrar of Trusts.
- Pay the prescribed registration fees.
5. Obtaining the Registration Certificate:
- After verifying the documents, the registrar will issue a trust registration certificate
Donation Return in Form 10BD– In the context of Indian income tax, Form 10BD is a “statement of particulars of donations received.” Therefore, when people say “donation return in Form 10BD,” they’re referring to the process of charitable institutions reporting the details of donations they’ve received. Here’s a breakdown:
Purpose of Form 10BD:
- It’s designed to increase transparency in donation transactions.
- It helps prevent fraudulent claims of tax deductions by donors.
- It requires charitable organizations to provide detailed information about the donations they receive.
What it involves:
- Organizations that receive donations eligible for tax deductions under sections like 80G of the Income Tax Act must file Form 10BD.
- This form includes details about the donors, such as their:
- Name
- Address
- PAN (Permanent Account Number) or other identification
- The amount of the donation.
- The mode of the donation.
- The type of donation.
Certificate in Form 10BE–
Form 10BE is a crucial document in the context of charitable donations and income tax in India. Here’s a details:
Purpose:
- Form 10BE is a certificate of donation. It’s issued by charitable institutions to donors who have made contributions that are eligible for tax deductions under Section 80G of the Income Tax Act.
- It serves as proof that a donation was made and helps donors claim their tax deductions.
Relationship with Form 10BD:
- Charitable institutions are required to file Form 10BD, which is a statement of donations received.
- After filing Form 10BD, they must then issue Form 10BE to the respective donors. So, Form 10BE is generated from the information provided in form 10BD.
Key Information:
- Form 10BE contains details about:
- The donor’s information (name, address, PAN, etc.)
- The charitable institution’s information (name, address, PAN, etc.)
- The amount of the donation.
- The relevant financial year.
- Form 10BE contains details about:
Cash Donation Limit–
When it comes to cash donations and their eligibility for tax deductions in India, particularly under Section 80G of the Income Tax Act, there’s a crucial limit to keep in mind:
Cash Donation Limit for Tax Deductions:
- Donations made in cash exceeding ₹2,000 are not eligible for tax deductions under Section 80G. This means that if you donate more than ₹2,000 in cash to a charitable organization, you won’t be able to claim a tax deduction for that amount.
- To claim tax deductions, it’s essential to make donations through other modes, such as:
- Account payee cheques
- Demand drafts
- Electronic transfer
Rationale:
- This restriction aims to promote transparency and reduce cash transactions, thereby curbing black money.
Therefore, to maximize your tax benefits when making charitable donations, it’s advisable to avoid cash donations exceeding ₹2,000.
Importatnt Registration related to Trust