As per the Indian trust act 1882, and an organization where the owner transfers the rights of his property to another person so that a beneficiary can opt and benefits through that property are called trust. There are 2 types of trust public trust and private trust. Public trust is further divided into 2 parts that are public chargeable trust and public religious trust. This is created to show that the public at large can obtain a benefit through it and the beneficiary in public trust is the general public at large. Just like public trust private trust can be further divided into 2 parts that are private trust That can determine their beneficiaries and their requisite shares and private trust which cannot determine the beneficiary and their requisite shares.
A trust will have to acquire a 12A certificate if it wants to be exempted from paying income tax for the entire life on its Surplus, from the income tax Department. If a trust is an NGO it must obtain an 80G certificate too, as It allows any person or organization who is a donor to availed deduction, and search deduction is given under section 80 G of the Income Tax Act.
Every state can have its trust act so that they can govern any non-profit organization in their territory, even if a trust is governed by the Indian trust act, 1882. If a trust wants to acquire It needs to meet certain eligibility criteria which include experience, age, performance, and other such parameters. If a trust is a public charitable trust it needs to be registered with the office of charity commissioner who has jurisdiction over it.
Registration of trust is done under the state act or Income Tax Act. If one wants to form a public trust he should have a declaration of trust that is binding on the settler, that settler or author of the trust must be competent to contract, the statement of the objects for which the property is held must be stated, And after deformation of trust, it shall not be revoked unless there are some exemptions provided in any clause or it is the court of original jurisdiction.
to constitute a charitable trust no formal or any other Written statement is necessary and it is not legally necessary to have a trust deed for the charitable trust, religious trust. However, it is advisable to have a properly registered trust deed for it.
To register for public charitable trust, it is important to choose an appropriate name for the trust and the name that has been suggested should not come under the restricted list of the names as per the provision of emblem and names app, 1950. A minimum of two trustees said to be there to format trust, however, the author cannot be a trustee but he should be a resident of India. A trust deed contains rules and regulations of your trust as it is legal evidence of its existence, it can also contain bylaws concerning the changes, removal, or addition of the trustee. It is important to formulate a memorandum of Association to represent the charter of the trust. This will specify the objective of the trust and the relationship of the trustor and trustees.
Some documents are required for registration for a trust deed, pan card, proof of registered office address of the trust, non-objection letter signed by the landowner, the proof of identity of the settlor and trustee. Aadhar card, passport, would ready, driving license, or any photo identity card can be used as the proof of identity for the settlor and trustee.
One must prepare a trust deed on a stamp paper and a certain percentage of the total value of the property is the value of the stamp paper. This value can vary depending upon which state the property of the trust is. For registration one will need to pay total fees of rupees 1100, The pipe location is rupees 1000 for keeping a copy of the trust beach with sub-registrar and rupees 100 for registration. Within one week certified copy of the trust, the deed can be collected from the registrar's office.
After op training the certified copy needs to be attested with photocopies submitted with the local registrar, it needs to be attested at every page of the photocopy of the trust deed. Two witnesses must be physically present during the time of registration and their identity proof needs to be attested as well. The registrar retains the photocopy and the original registered copy of the trust deal is returned. A minimum of 7 days is required to complete the formalities of registration, and the certificate is issued after that.
This Article Does Not Intend To Hurt The Sentiments Of Any Individual Community, Sect, Or Religion Etcetera. This Article Is Based Purely On The Authors Personal Views And Opinions In The Exercise Of The Fundamental Right Guaranteed Under Article 19(1)(A) And Other Related Laws Being Force In India, For The Time Being.
