NGO's in India

Registration of Trust Deed Procedure in India

Why to go for Registration of Trust deed of your NGO ?

For a public trust, whether in relation to a movable property or an immovable property, the registration is optional but always desirable. A registered Trust Deed has the following advantages;-

registration of trust deed

a) A registered Trust Deed becomes an official document which carries support and force of law.

b) A registered Trust Deed effectuates transmutation of possession

c) A conveyance of trust property to the trustee under a registered deed is generally not open to challenge.

However, in case of a charitable or religious trust, in relation to an immovable property, for claiming exemption U/s. 11of the Income Tax Act, it is essential that the instrument of trust is duly registered [CIT v. Trustees of Dr. Divekar Charity Trust {1977}110 ITR 227 (BOM.)]

Registration of a Trust

Registration of a Trust is required from two angles:

I. Registration under state Act.

II. Registration under Income Tax Act.

No formal deed or any other writing is necessary to constitute a charitable trust. It is legally not necessary to have a written trust deed for the charitable trust/religious trusts, societies and institutions. From the practical point of view, however, it is always advisable for charitable trusts to have a proper registered trust deed. When the trust deed is reduced into writing with the Registrar, it facilitates exemptions under section 80G of the Income Tax Act for the donors. It may be noted that this is an essential requirement for the purposes of section 80G of the Income-tax act, 1961.

Under the provisions of sections 11, 12, 12A and 13 read with sections 60 to 63 of the Income-tax Act, the income of charitable/religious trust is exempted from income tax subject to the fulfillment of certain conditions. Such trust/institutions are entitled to exemption under the Income-tax Act when they are created or established for charitable purposes as defined under section 2 (15) of the Income-tax Act, 1961.

5 Comments

5 Comments

  1. MISS SUJATA BARIK

    October 11, 2015 at 6:56 pm

    Kindly help me for applying registration of RAJARANEE MEMORIAL TRUST DEED, Under reg. State Act & It Act- 1961 as per your guidlines. Thanking oyu.

  2. Younus Hussain

    March 9, 2016 at 9:23 pm

    Sir,
    We have Registered Educational & Social Welfare Trust in Warangal District ,Telangana State in District Registration Office . My Query is Our Trust Comes under Telanagna Trust Acts or Indian Trust Acts.We have followed all steps mentioned in the Website. Please Comment.If you need any info please let me know.
    Regards,
    Younus

  3. SUBRATA GOSWAMI

    April 13, 2016 at 1:11 pm

    i want to register our trust, it is near Pendra, State Madhya Pradesh. i want the address in details of the register office where i can register my trust.

  4. Budhadev Bastaray

    August 31, 2016 at 4:07 pm

    Dear Sir I like to register our trust in odisha state act please help me, thus is my contact number please contact me as soon as possible 8895146062. the name of the trust : LACOH, that is (Love Affection Care of Humanity) Please sir help us.

    Thank you

    Regards

    Dev Ray

  5. vikram

    October 13, 2016 at 1:27 am

    can advocate become trustee

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