What is Public Trust?
Public trust is an organization or NGO made for the benefits of the people. Its main purpose is to eradicate poverty, provide education to underprivileged children’s, providing medical reliefs etc. The general aim of a trust is to promote arts, science & literature. Trust cannot be amended or terminated without court permission. In order to govern the public trust, there are no specific laws in India. However, some states have their own public trust acts. For ex – Maharashtra & Tamil Nadu.
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Contents of Trust deed
The trust deed is the most important document which defines the formation of a trust, its working, its functions & its closure.
The important clauses in a trust deed are as follows –
- Name of the trust
- Registered office
- Area of operation
- Assets of the trust
- Details of the founder
- Details of board of trustees
- Powers & functions of management trustee & other trustees.
- Quorum of the board along with the terms, tenure & qualification.
- Amendment & closure of the trust deed and the applicability of the act.
Documents Required for Trust Registration in India
The documents required for the registration of the trust are as follows –
Reason for registering a Trust
As per public trust act, trust registration is mandatory in all states, if its main motive is charity or a transfer of immovable property in the name of the trust. Tax exemptions are also providedto the registered trust under section 12A & 80G of the income tax act. Registration adds more credibility to the trust as it involves public money in the form of donations.
After doing registration, the founder of the trust should apply for the following things –
Constitution of the Trust
Board of trustees forms the trust and comprises of the following persons –
Quorum of Board of trustees should not exceed maximum of 21 members.
Tax exemption applicability for Trust
It is a general belief that trust need not have to pay tax as its main aim is to work for the benefit of the people but it’s not true. Trust is a legal entity like others and is liable to pay tax. In case, if trust wants tax exemption, it has to obtain certification from income tax authorities for tax exemptions such as section 12A, 80G etc.
How Finacbooks help in registering a Trust in India?
Finacbooks is a leading Indian portal providing accounting, finance & taxation services to small businesses. We are having more than 10 years of experience helping trust founders in providing trust registration as well as tax exemption certificates at a least possible price. We will guide you through the entire process of trust registration. To avail the best deals on trust registration, kindly call us at 8800221252 or you can also e-mail us at firstname.lastname@example.org
- Mismanagement of the trust
- Absence of trustees
- Disqualification of trustees