Trust Registration
Overview of Trust Registration
- In trust registration, we can do mainly for social service activity such as children education, helping peoples and other social activities.
- It is a process of legalizing the trust deed between Settlor and Trustees.
- The trust agreement is also called as trust deed, which contains names of the members and their addresses, the trust name, the date of commencement of operation of the firm, trust activities, rules and regulations of trust firm.
- A trust firm must have minimum one settlor (founder of trust) and two trustees.
- Trust firms are governed by “The Indian Trust Act, 1882”. Rights and duties of members are governed by this Act.
Documents Needed
All members Aadhar card
All members Pan card
All members latest passport size photos
Latest company located rental or lease agreement and eb bill (For rental place), or Eb bill and property tax receipt (For own place)
Parties in a Trust
Author/Settlor/Trustor/Grantor
A trustor is the person who creates a trust. Trustors can be a single person or more than one person in trust firm. In most cases, the trustor will set up the trust and fill it with assets, this is called “funding the trust”.
Trustee
A trustee is responsible for trust firm. A trustee can be a person or multiple persons who manage the trust firm. The trustor determines who the trustee is and what their duties are and puts that information in the declaration of trust.
Beneficiary
A single person or more than one person who will benefit from the trust in the near future.
Duties of Trustor and Trustee
Duties of Trustor
- Trustor main role: The trustor can nominate someone to manage the trust, or they can choose to be trustee themselves.
- Determining the terms of the trust: The trustor can decide on its terms and conditions of the trust.
- Deciding the beneficiaries: The trustor should decide who will receive each asset in the trust. These beneficiaries may be public or company employees or family members or friends
Duties of Trustee
- Trustee main role: The trustee manage the general administration of the trust, including everyday general tasks.
- Distributing assets: The trustee can distribute the trust assets to beneficiaries in proper way.
- Manage trust accounts: The trustee can file and manage taxes for trust property and also he handles other trust bills like as auditor fees, utility bills and the trustor’s healthcare costs.
12A and 80G Registration
- 12A registration provides tax exemption to these organizations on the income they earn from grants and donations.
- 80G registration is obtained by NGOs to enable their donors to claim tax exemption. The purpose of the 80G is encourage more donations for NGOs to support their welfare activities. The 80G registration can be obtained only after that 12A registration.
- Both 12A and 80G registrations are governed by Income Tax Department.
- Only 12A and 80G registered NGOs are permitted to accept International funding with exemptions available under Foreign Regulation Act, 2010 or FCRA.
- Both 12A and 80G are one-time registrations and valid for an NGO’s lifetime.
Benefits of Trust registration
- A trust is relief many peoples from their poverty. It can also provide education to many poor wealth students.
- The main benefit of the Trust is to claim tax benefits from income tax filing those who are registered their trust in registrar office.
- According to the Indian Trusts Act, of 1882, the trust’s legal standing can’t be impaired by any third party making unnecessary claims.
- The Trust compliance is very less as compare to other companies. For e.x the ownership of trust was very easily transfer to any other persons.
Trust Firm registration fees
Basic
Rs.5000
- Deed Formation
- PAN Card Registration
- 12A Registration
- 80G Registration
Standard
Rs.11000
- Deed Formation
- PAN Card Registration
- 12A Registration
- 80G Registration
Premium
Rs.17000
- Deed Formation
- PAN Card Registration
- 12A Registration
- 80G Registration