Trust registration in Jharkhand. Trust is registered and governed by the Indian Trust Act. In simple word, it is a financial vehicle which transfers property from its owner to a trust for the lawful purpose. In India, some societies are registered as a public trust. Often, you’ll even hear of the wealthy creating private trusts; this is done because of the tax-efficient nature of the trust (dividend distribution tax or minimum alternate tax do not apply). It is the easiest way to transfer than making a will. However, it does much involve more effort to register a trust than to write a will.
Many people are of the belief that one should register their charitable trust and some other people who believe there is no need to do such thing.
Tax relief to Donors: If you are a registered trust and have attained a certificate of deduction under 80G, even those persons who donate to you will get a tax relief. This will result in increased donations.
Step by Step guidelines to Register your Trust
- Preparation of the Trust Deed
- Objectives of the trust
- Objects of the Trust
- Registration of the trust by Trust Deed
- Name of the Trust
FAQS:
QUESTION: Is registration of trust compulsory in India?
Yes it is mandatory for a trust to get the registration under Section 12AA of the Income-tax Act, 1961 so as to claim exemption under Section 11
QUESTION: Is trust a legal entity in India?
Trusts do not have a separate legal personality under Indian law. … Even under the Companies Act, 2013, since the trust is not regarded as a legal entity, if any shares are acquired by the trust the same are recorded in the ‘Register of Members’ of the company in the name of the trustee on behalf of the trust.
