Q: What is 12A for trust?

Section 12A of the Income Tax Act in India provides for the registration of trusts and institutions for availing tax exemptions under Section 80G. It's essential for trusts seeking tax benefits.

Question 1

How is a trust registered?

Accepted Answer

To register a trust, you typically need to draft a trust deed specifying the trust's objectives, trustees, beneficiaries, and rules. The deed must be signed and executed by the settlor and trustees. It should then be registered with the local Sub-Registrar or the office of the Charity Commissioner, depending on the jurisdiction.

Question 2

Where can I register my trust in Tamil Nadu?

Accepted Answer

In Tamil Nadu, you can register your trust with the office of the Inspector General of Registration or with the office of the Charity Commissioner, depending on the nature and purpose of the trust.

Question 3

What are the requirements for trust registration?

Accepted Answer

Requirements may vary by location, but generally, you need a trust deed, details of trustees, and compliance with local regulations to register a trust. Consult legal professionals or authorities for specific requirements.

Question 4

What are the types of trust in Tamil Nadu?

Accepted Answer

Trusts in Tamil Nadu can vary in purpose, such as public charitable trusts, private trusts, religious trusts, educational trusts, and more, each catering to specific objectives.

Question 5

Who can form a trust?

Accepted Answer

A trust can be formed by an individual (settlor) or a group of individuals (trustees) for a lawful purpose, with defined beneficiaries.

Question 6

Is it compulsory to register a trust?

Accepted Answer

While registration is not compulsory, it provides legal recognition, tax benefits, and increased credibility. Many trusts choose to register for these advantages.

Question 7

What is the cost of trust registration?

Accepted Answer

The cost of trust registration varies depending on factors like location, legal fees, and any associated government charges. It's advisable to consult with legal experts for precise cost estimates.

Question 8

How many types of trust are there?

Accepted Answer

Trusts can be categorized into various types based on their objectives, such as charitable trusts, private trusts, public trusts, religious trusts, and educational trusts, among others.

Question 9

How do I register a private trust?

Accepted Answer

Registering a private trust involves creating a trust deed specifying its objectives, trustees, beneficiaries, and rules, and then registering it with the appropriate authority as per local laws.

Question 10

What is 12A for trust?

Accepted Answer

Section 12A of the Income Tax Act in India provides for the registration of trusts and institutions for availing tax exemptions under Section 80G. It's essential for trusts seeking tax benefits.

Question 11

How many members are there in a trust?

Accepted Answer

The number of members in a trust can vary, but there must be a minimum of two trustees. The trust deed may specify the maximum number of trustees, if any.

Question 12

What are the benefits of trust registration?

Accepted Answer

Benefits of trust registration include legal recognition, tax exemptions, credibility, the ability to hold and manage property, and fulfilling the trust's objectives more effectively.

Question 13

What type of trust is best?

Accepted Answer

The best type of trust depends on the specific objectives and purposes you want to achieve. Consult with legal experts to determine the most suitable trust structure for your needs.

Question 14

Is trust registration required?

Accepted Answer

Yes, in order to provide protection under Section 11 of the Income-tax Act of 1961, a trust must first register under Section 12AB of that Act.

Question 15

Can one person register a trust?

Accepted Answer

A public trust can be incorporated in India by a single person who focuses on philanthropic activities and provides relief for poverty medical and educational purposes.

Question 16

What is the benefit of trust registration?

Accepted Answer

To make the Trust a legal entity, the concerned parties, the trustor and the trustee, must obtain a trust deed. These contracts aid in defining the trustee's authority to administer the settlor's assets.

Question 17

Do family trusts pay tax?

Accepted Answer

A family trust normally doesn't pay any taxes on its own revenue. Instead, the beneficiaries receive the income and pay tax at their own rates. The fund's trustee determines who in the family will receive dividends.

Trust Registration In India

FAQ's on Trust Registration In India

Recent Updates

New Regulations Prevent Foreign Nationals and Ex-convicts from Becoming Trustees of Public Trusts.

12th April: Amid lockdown, Shirdi Trust plea locals to register for blood donation

03rd April: 13 Eminent Experts allowed in PM-Cares Fund

Trusted by 400,000 clients and counting, including …