Why Register a Trust?

Registering a Trust offers numerous advantages:

• Enables you to undertake charitable or religious activities legally

• Avail tax exemptions under Sections 12A & 80G of the Income Tax Act

• Ensures transparent asset management

• Helps in preservation of family wealth

• Facilitates immigration, inheritance, and asset protection planning

• Avoids family disputes and lengthy legal battles

Types of Trusts in India

1. Private Trust

   • For specific individuals or families

   • Governed under the Indian Trusts Act, 1882

2. Public Trust

   • For the benefit of the general public

   • Governed under specific state public trust acts (e.g., Bombay Public Trust Act, 1950)

3. Public-cum-Private Trust

   • Hybrid model with both public and private beneficiaries

4. Others (Based on Motive)

   • Express Trust, Implied Trust, Simple Trust, Special Trust, etc., depending on objectives and trustee responsibilities

Key Parties in a Trust

• Author/Settlor – The person who creates the Trust

• Trustee – The individual/body that holds and manages the Trust property

• Beneficiary – The individual(s) who benefit from the Trust

Documents Required for Trust Registration

1. Aadhaar Card, PAN Card, and Address Proof of Settlor & Trustees

2. Registered office address proof (utility bill or property papers)

3. NOC from landlord (if office is on rented premises)

4. Trust Deed on stamp paper (as per applicable stamp duty)

5. Passport-size photographs of all parties

6. Objectives and activities of the Trust

What is a Trust Deed?

The Trust Deed is a legal document containing:

• Name of the Trust

• Number and details of Trustees

• Registered address of the Trust

• Defined objectives and functions

• Rules for trustee appointments, dissolution, and meetings

• Signature of Settlor and two witnesses

Step-by-Step Trust Registration Process

Step 1: Choose a Name

Select a unique name that is not under the restricted list under the Emblems and Names Act, 1950.

Step 2: Decide on Settlor and Trustees

Minimum 2 trustees required. Settlor usually cannot be a trustee.

Step 3: Draft the Trust Deed

Drafting includes objectives, rules, roles, and rights of trustees and beneficiaries.

Step 4: Prepare Trust Deed on Stamp Paper

Value depends on the trust property and state-wise stamp duty laws.

Step 5: Submit Trust Deed to Sub-Registrar

Along with identity proofs and other documents. All parties must be present.

Step 6: Obtain Registration Certificate

After verification, the Registrar provides a Certificate of Registration within 7–10 working days.

Compliance & Penalties

Failing to register or comply with income tax requirements may result in:

• Civil & criminal penalties for breach of trust

• ₹10,000 penalty for failure to apply for a Tax Deduction Account Number

• Penalties for not filing returns or late filing

Impact of Section 12AB

With effect from April 1, 2021, all existing trusts registered under sections 12A, 12AA, or 80G must re-register under Section 12AB to continue availing tax benefits.

Do Trusts Need to File ITR?

Yes. Trusts are required to file income tax returns electronically either:

• With a digital signature, or

• Under Electronic Verification Code (EVC)

Trusts subject to audit under Section 44AB must file using a digital signature.

Why Choose S. R. Mahajan & Co. for Trust Registration in Aurangabad?

• End-to-End Guidance from drafting to registration

• Accurate and Compliant Documentation

• Expert Advisory on 12AB, 80G, and Income Tax matters

• Local Expertise with Pan-India Support

• Fast, Transparent, and Hassle-Free Process