Gain insights into the intricate steps involved in registering a Charitable Trust, from fulfilling legal requirements to documentation.
What is Registration of Charitable Trust?
Trusts, established with altruistic aims like advancing sciences, literature, and noble causes, cater to needs like scarcity relief, educational provision, and medical aid. Official trust registration under the Trusts Act of 1882 ensures recognition and lawful operation. Registration of Charitable Trust validates it legally and solidifies its distinct existence.
When considering a non-profit or charitable trust creation, trust registration becomes pivotal to ensure smooth operations and adherence to legal mandates. At IndiaFilings, our adept professionals guide you through the entire registration process, ensuring a seamless and effective experience. Reach out today to discuss trust registration and leverage our expertise in establishing compliant, functional trusts.
Details and Documents Required For Trust Registration
- Letter accompanying Trust registration for the relevant Jurisdictional Official
- Duly notarised application Form (Schedule II) for Trust Registration (Downloadable for Maharashtra)
- Application form affixed with a ₹2 court fee stamp
- Attested copy of the Trust deed
- Trustees’ consent letter
Creation of Charitable Trust
To initiate the registration of a charitable trust, an application for Trust registration needs submission to the respective state authority overseeing Trust registration. For instance, in Maharashtra, the Charity Commissioner handles this process. Essential details like Trust name, Trustees’ names, succession method must be included.
Additionally, a court fee stamp of ₹2 and a variable registration fee based on Trust property and state regulations are required. A certified copy of the Trust deed must accompany the application. The completed trust registration form necessitates the applicant’s signature, witnessed by the Regional Officer, Superintendent of the Charity Commissioner’s Regional Office, or a Notary.
Procedure for Charitable Trust Registration
Step 1: Trustees acquire digital signature certificates (DSC) and director identification numbers (DIN) as initial prerequisites for trust registration
Step 2: Drafting the trust deed, a comprehensive document delineating the trust’s objectives and regulations, conducted by a legal professional and endorsed by trustees
Step 3: Submission of the trust deed to the relevant state’s Registrar of Trusts, alongside mandated forms and records
Step 4: Registrar review, potential request for supplementary details, and issuance of the registration certificate upon approval of the trust deed application.
Frequently Asked Questions
Does a charitable trust need to be registered?
Yes, registration is necessary for legal recognition and operations. A trust can seek registration under the Indian Trusts Act, 1882, or the Registration Act, 1908, depending on the state's laws.
What is the process of trust registration?
The process involves creating a trust deed, with details like trust objectives, trustees, and operations. Afterward, the trust must apply for registration with the local registrar.
How do I register a charitable trust under the Income Tax Act?
Once the trust is registered under state law, to avail tax benefits, it needs to apply for tax exemption by filing Form 10A with the Income Tax Department.
How many days will it take for registration of charitable public trust ?
The registration duration varies by state. Generally, it takes 15-30 days after submitting the complete application and required documents to the registrar.
What are the due dates for filing an Income tax return by charitable trusts ?
Charitable trusts need to file their income tax returns by July 31 if they aren't subjected to audit and by September 30 if audit is required under the Income Tax Act of 1961.
Is GST registration mandatory for public charitable trust ?
GST registration is mandatory for a charitable trust if their aggregate turnover exceeds the prescribed threshold limit, usually ₹20 lakhs (as of current regulations).
