Trust is registered and governed by the Indian Trust Act, Trust Registration Format. Formation of trust and registration of Trust is as per Indian Trust Act. Trust is created with a document named Trust deed. (Example Model Trust Deed which may be shaped to registered with a stamp duty paper in the Registrar office as per the Registration Act.)

How trust is formed?

Trust is created by a settlor, who transfers title to some or all of his or her property to a trustee, who then holds title to that property in trust for the benefit of the beneficiaries. The trust is governed by the terms under which it was created.

Is it compulsory to register a trust?

Registration of a Trust is required from two angles: It is legally not necessary to have a written trust deed for the charitable trust/religious trusts, societies, and institutions. From the practical point of view, however, it is always advisable for charitable trusts to have a properly registered trust deed.

What is 80g & 12aa certificate?

An 80G certification is one that is granted to certain not-for-profit organisations by the Income Tax Department, granting their donors the ability to avail of a tax deduction on donations. To apply for an 80G certificate, however, the Trust must first have a 12A certificate.

What is 80G Certificate?

80G Certificate is issued to a non-profit organization or non-governmental organizations (NGO), a charitable trust or a Section 8 Company by the Income Tax Department. The objective behind the 80G certificate is to encourage more and more donors to donate funds to such organizations. The benefit that the donor avails by donating to such an NGO is that he gets tax exemption on 50% of his donation as the donor is allowed to deduct their donations from their Gross Total Income.  To avail the tax exemption, the donor needs to attach the stamped receipt against the donation that is issued by the NGO – the receipt needs to include the name, date, and PAN of the organization.

What is 12A Registration?

Now that we have covered 80G Registration we will discuss 12A registration and 12A registration process.By virtue of 12A registration, Trusts and NGOs and other Section 8 companies enjoy exemption from paying income tax. NGOs are basically organizations that are meant for charitable and non-profit activities. However, they do have income and would be required to pay tax as per normal rates if not registered under section 12A of the Income Tax Act. The Section 12A of the IT Act, 1962 does not differentiate between charitable and religious Trusts. Hence 12A registration is applicable to both the kinds of organizations.

Documents required for Trust Registration

The details of trustees like Name, Occupation, Address, Age, Father’s Name, Designation, Mobile Number, Email Address and Two Photograph are required.

Address Proof of Trustee & Settler required: – Voter I.D / Driving license / Passport / Adhar Card

Electricity Bill or House Tax Receipt or Water Bill Receipt or Ownership Proof of Property required where registered office of the trust is situated.

In the case of Rented, Rent Deed duly notarised with rent receipt and NOC form Land Lord on Rs 10/- Stamp Paper. Name of Landlord, Father’s name, Residence Address.

Physical Presence of Settler/all required at the time of Registration along with Original ID.

Physical Presence of Two witnesses with original ID Proof at the time of Registration.