A non-governmental organization (NGO) is an organization that is not a portion of a government...
A Trust can be either private or public. Private trusts are governed as per the Indian Trusts Act 1882. In this article we have described about how to get Trust Registration under the Indian Trust Act, 1882.
Trust is governed by the Indian Trust Act. Under this, there is a transfer of a property from its owner to a trust for a lawful purpose. In other words trust is an organization where the owner decides to transfer the right of his property to a second person who is called as trustee.
For the purpose of NGO Registration one needs to make a decision on the following matters:
It is an instrument of trust by which trust is declared. A trust deed has many clauses such as Name clause, registered office clause, settler and trustee clause general body member clause and other rules and regulations.
Here are all Requirements for Trust Registration Deed:
The process of trust registration is as mentioned below:
First of all select a unique name for your trust. Such name should be new and should not lead to any infringement.
Determine the number of trustees for your trust. Minimum 2.
The trust deed is drafted afterwards.
For registration of trust deed, trustees and author of the trust must be present with the sub registrar office along with 2 witnesses. There must be properly attested copy of trust deed and registration fee also have to be paid.
On trust deed registration, apply for PAN and TAN of the trust thereafter apply for a bank account.
Trust is created to indulge in charitable activities and also avail of tax exemption. It may be noted that income of registered NGOs as public trust or society or Section 8 company is exempted from tax.
Tax exemptions can be granted to the registered trust under section 12A and 80G of the Income Tax Act. It may also be noted that income tax registration is mandatory to avail tax exemptions.
Credibility would be more when the trust is registered as it involves individuals money in donations form.
If we are to sum up the benefits of trust registration in one line, then it would include the following:
Following documents are required to be submitted for 80G:
A public trust is a trust whose beneficiaries are the common public at large. A public trust may be divided into two- public charitable trust and public religious trust.
In case of a private trust, its beneficiaries include individuals or families. Private trust can also be divided into two- a private trust whose recipients and their imperative offers may be resolved and private trust whose both or either beneficiaries or requisite shares can’t be determined.
It may be noted that trust must meet certain eligibility criteria in case the trust is interested in obtaining funds. A trust should have a legitimate enlisted trust deed. In case you need more information on trust registration or related laws, consider reading our blogs.