How to register a trust in india

1. Choose a name for the trust's apartment

The name of the prospective Trust must be chosen as the first and most important stage in the registration procedure. 12a registration is a must for NGOs. Be careful when carrying out such a task and keep the following things in mind to prevent any problems:-

(i) The name must adhere to the Emblems and Names Act of 1950's rules.

(ii) There should be absolutely no infringement of the Trademark Act.

(iii) The name needs to maintain its distinctiveness.

You can gain knowledge on 80gga of the income tax act.

2. Create a trust deed

  Because the Trust is not legally enforceable without a Trust Deed, its drafting is a crucial task.

In general, the following clauses are combined in the trust deed:-

(a) Objects:- The purpose for which the Trust was created is reflected in the Object clause.

(b) Receipt of Funds:- This provision gives the Trust the freedom to receive contributions, gifts, and subscriptions from any person, organisation, or benevolent cause in the form of money or real estate without incurring any debt. The section further specifies that any contributions that interfere with the Trust's purpose are not permitted.

Additionally, this clause set up guidelines for the efficient distribution of spare assets that aren't being used but may generate extra income through investments.

(c) The Trustees' authority:- This particular clause, as its name implies, discusses the duties of the trustees.

(d) These provisions often give the following authority to the trustees:-

(i) appointing worker (s)

(ii) Abusing the trust's assets

(iii) opening a bank account under the name of the Trust

(iv) bringing legal action against defaulters on the Trust's behalf

(v) accepting any gift or contribution from reputable people or sources

putting more money into securities.

 (e) Finance and Accounting:- The trustees must regularly manage the book of accounts within the terms of this article. It also specifies the need for account audits, which must be carried out by the qualified CA.

(f) Wrapping up:- When all of the trust's assets are properly dispersed to beneficiaries or another comparable body, either directly or through resettlement, a trust is deemed wound up. When the Trust is dissolved, the concerned parties must determine any tax liabilities brought on by the transfer of assets. In order to reduce the likelihood of a legal dispute, this article also imposes the necessity that any such legal obligation is carried out with the consent of the charity commissioner, court, or other legislation.

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