Trust Registration

Acts to keep in mind

Indian Trusts Act

Income Tax Act

IT Act is about paying tax on income in general.

For the purpose of IT Act, a Trust is also a person who should pay income tax.

Section 2(15) talks about what is charitable purpose.

Section 11 of the Act talks about how (or what) Trust income do not count as income in income tax calculation. It talks carry over more than 15% being taxable, and things like some fixed deposits not being taxable.

Section 11(4A) talks about maintaining separate book for accounts related to business income.

Section 12 talks about donations also being treated like section 11 income.

Section 12A talks about how benefits of section 11 and 12 are available only if the trust is registered with the Commissioner.

Section 13(1)(c) and 13(3) talks about how the benefits of section 11 and section 12 do not apply to the money spent in benefit of the founder of the trust or their relatives.

Section 80(G) talks about when other individuals donate to a trust, them getting an income tax relief on their income, and the registrations required by the trust for these.

Companies Act

Section 135 defines Corporate Social Responsibility

FCRA

Prevents foreign contributions. End of topic.

Goods and Services Act

If there’s income from services more than limit.

Trust Deed

Templates:

Sections include:

  • Laying out who is the “author” (the person transferring the trust property to the trust)
  • Laying out what’s the trust property (maybe even 1,000 rupees)
  • Laying out who are the trustees (can include the author themself)
  • The objectives with which the trust is being formed
  • Laying out details of the trust
    • Name
    • Address
    • Objectives
    • Trustees
    • Duties, terms, etc
    • Other procedures
    • Accounts related
    • Amendments
    • Dissolution
  • Witnesses
  • Signatures