TRUST ................................................................................................................................. 2 TYPES OF TRUST ................................................................................................................ 3 BENEFITS OF TRUST .......................................................................................................... 4 CREATION OF TRUST ......................................................................................................... 5 REGISTRATION OF CHARITABLE TRUST........................................................................... 6
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TRUST
TRUST
Is an obligation in respect of Where trust has to be Trust Property created owned by the owns the trust Who Author property taken over by the Who holds the trust property for the Trustee benefit of beneficiary for the benefit of Beneficiary Any person for whose benefit the Trust is Created
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TYPES OF TRUST Public Trust Public Charitable Public Religious Trust Trust Any trust made for the advancement, support or Any trust propagation of a made to religion and its promote any tenets is called sports, for religious trust. relief of poor, to provide education is called a Charitable trust
TYPE OF TRUST
Public cum Private Trust
Private Trust
Private Specific Trust
Where the beneficiaries and their share both are determined
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Private Discretionary Trust
Where the beneficiaries and their share are not determined
Where the part of income may be incurred for public purposes and part may go to a private person(s)
BENEFITS OF TRUST BENEFITS OF TRUST
The income derived from a property held under charitable or religious trusts is exempt from tax under section 11 subject to the fulfillment of certain conditions.
CONDITIONS TO BE SATISFIED
It must be created for lawful purpose
The property from which the income is derived should be held under trust.
The Trust must get registered with Commissioner of Income tax within the prescribed time.
The accounts of the trust should be audited for such accounting year in which the total income, before giving effect to provisions of section 11 or 12, exceeds the maximum amount which is not chargeable to tax
TAX BENEFITS
Exemption of income from property held in trust or other legal obligation, for religious or charitable purpose.
Exemption of income derived by such a trust from voluntary contribution not being contribution made with a specific direction.
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CREATION OF TRUST CREATION OF TRUST
Pre‐requisite for formation of a valid trust Clear Intension Intension of the author should be clear to create a trust
Purpose Creation
of
It should be specified, the purpose for which the trust is created
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Beneficiary
Who are the beneficiaries to the trust
Trust Property
Where Trust created
the is
REGISTRATION OF CHARITABLE TRUST It should be in Form as specified in Schedule II under rule 6 and duly notarized
REGISTRATION OF CHARITABLE TRUST
Make an application for registration of the public trust with the following
Covering Letter for registration of Public Trust
Court Stamp of Rs. 2/‐
Certified True Copy of the Trust deed
The application to be submitted to the Deputy or Assistant Charity Commissioner of the region or sub region within the limit
The Trust has the office for the administration of the Trust
The Trust or the Trust property or substantial portion of the trust property is situated
The application shall be made within 3 months of creation of Trust and shall inter‐alia contain the full detail as prescribed in form of Schedule II
A
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A
Every application made under sub‐ section (1) shall be signed by the trustee or his/ her agent duly authorised
To be submitted to the Deputy or Assistant Charity Commissioner of the region, who on receipt of the application
Return the Application to the Trustee
In case the application is incomplete in respect of any particular Trustee
Approve the application and endorse a certificate containing the word ‘Registered’ together with number and page of the book in which the document has been copied and forward the same to the trustee
Does not disclose full particular of the Public Trust Trustee
Issuance of Certificate of Registration in the prescribed format
