Creating a trust deed is the first step in the trust registration online process and it is necessary to register a charitable trust. Therefore, charitable enrolment is also referred to as a trust deed. Trust Deeds are usually drafted on a non-judicial stamp document, for which stamp duty is determined by each state. Having drafted the trust deed registration, the next step is to schedule an appointment with the sub-registrar office in the concerned area. As part of the registration process, all trustees must meet with the sub-registrar on the appointed date, along with the trust deed and two witnesses.
The public’s trust
National trusts are intended to benefit the public on a vast scale, therefore their beneficiaries are the general public. Public trust can be divided into two categories: national and provincial.
Trusts for public charities
Trust for public religious purposes
A trust for private individuals
It is usually family members or individuals who are the beneficiaries of this type of trust. Private trusts are further classified into two types:
Trusts in which recipients can also make imperative offers
2. Private trusts for which neither the recipients nor their imperative offers can be settled
Process of registering a trust in India
In order to register a trust under “The Indian Trust Act, 1882”, the following documents are required:
- The bill of water or electricity mentions the address that needs to be registered.
- A minimum of two members of the entity must provide proof of their identity. This can be in the form of:
- License for driving
- Identification of voters
- Identification card based on Aadhaar
- Authentication of passports
- As per Indian Trust Act – 1882 norms, the trust registration online process takes around 8 to 10 days after you pay the registration fee.
- Legal documents are only valid across the country after the applicant makes a presentation at the corresponding registrar’s office.
Formalities associated with income tax
It is necessary to complete the 12A and 80G registrations after completing a valid trust registration before you can receive the tax exemption. A Form 10A is used for filing the application.
Payment fees of the trust or establishment without impacting Sections 11 and 12 exceed 50,000/ – a chartered accountant or another qualified bookkeeper who has been selected as an evaluator of companies shall examine the report and statement or records of the trust or foundation for that respective year. As per the Income-Charge Rules, 1962, the audit report and records should be filled out in Form No. 10B and attached to the income tax return.
FAQs
What is the process for drafting a trust deed?
It is generally a trust composed of three parties – the settlor or creator, the trustee, and the recipient. In the beginning, a trust is constituted when the settlor or creator transfers any property to the trustee which may be used by the trusted recipient to be used.
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