Procedure for Registration of a Trust

➲ Preparation of Trust Deed:

It is not a mandatory requirement but it is desirable to have a Trust deed in place. It is also enforceable by law and provides an increased sense of security. Following details must be mentioned in the deed:

  • Name and address of trustor (the one who set up the trust)
  • Name and address of another trustee
  • Address for correspondence & Evidence
  • Name of trust
  • Minimum and maximum number of trustee
  • Registered office address of the trust
  • Objective of trust
  • Rule and regulation of trust

​➲ Particulars of a Trust Deed

  • There should be least three parties are required to form a trust.​
  • Author of the trust’s name & address should be mentioned in the deed.
  • Details of trustees/ member: Address and details of trustees shall be mentioned in the deed. A minor cannot be a member/trustee.
  • Details of the beneficiary shall also be included in the deed.
  • Objects of trust must be clearly mentioned in the trust deed.

➲ Registration of the trust with the trustee:

The next step after the preparation of Trust will be to register the Trust deed. It is not compulsory but is needed to get the trust registered under the Income Tax Act for availing the exemptions under Section 12A and Section 10G. Moreover, a deed is a prima facie evidence of the existence of a trust and also a written proof of the existence of the trust. The deed shall be submitted to the local registrar of trust along with the one copy and the settler shall sign all the pages of the copy of the said deed.

➲ Tenure of Trustees:

Tenure for trustees shall be a minimum of 1 year up to a maximum of 5 years.

➲ 80G and 12A certificate application is for tax benefits

A trust shall go for registration under Section 12A and 80G in order to avail Tax exemptions prescribed by the Income Tax Act.