TRUST REGISTRATION
- Category: TRUST REGISTRATION
- Date 05-09-2017
As per the Public Trust Act of all states, registration of Trust is mandatory if it involves charitable purpose or when there is a transfer of immovable property in the name of the trust. Only registered trust is eligible for tax exemptions provided under Section 12A and 80G of the Income Tax Act.
Registering a trust adds more credibility to the same as it involves public money in the form of donations. Public Trust is the most convenient way of starting a non-governmental organization or NGO. A trust functions on the objective of eradicating poverty, providing education to the underprivileged and offering medical relief apart from the generalized aim of promoting arts, science and literature. It is to be noted that trusts are irrevocable which means they cannot be amended or terminated without the permission of the court. As an initial step in registering the trust, the founder of the trust or the “Author of the Trust” or the “Settlor of the Trust” has to figure out in a document the objectives of the trust and the manner in which the trustees have to work towards achieving the goals of the Trust. This document that contains all such details is called a Trust Deed, which is also called a deed of trust.
Once this is made, thereafter, an application for registration of the trust shall be moved before the Registrar of Trust along with the Trust Deed or a deed of trust. The appropriate jurisdiction for registration of the trust is usually where the registered office of the trust is located.