Rss Feed
Tweeter button
Facebook button
Technorati button
Reddit button
Myspace button
Linkedin button
Webonews button
Delicious button
Digg button
Flickr button
Stumbleupon button
Newsvine button
Youtube button

Wednesday, March 17, 2010

How To Create Charitable Trust ?

February 26, 2008 by taxworry · Leave a Comment 

Income Tax Act has specific provisions for exempting income of a charitable trust and also giving deduction u/s 80G to persons giving donation to approved charitable trusts.The process of setting  up a charitable trust , there fore , has two steps:

  1. Registering a Trust deed with registering authority.
  2. Applying before Commissioner of Income Tax for registration of trust for the purpose of exemption.

Registering a trust deed

  • Prepare the  trust deed   on non-judicial stamp paper.
    • [Compute value of stamp paper as per the value of the property of the trust deed]
  • Submit it the office of  District Registrar  .

Important points to incorporate in the trust deed

  • Name of the trust deed.
  • Name of the authors or settler of the trust.
  • Name of the trustees
  • Clearly mention if the public at large are beneficiaries.
  • Details regarding principal office and other branch office.
  • Details regarding the property which devolve on trustees
  • Procedure of appointment,replacements and removal  of trustees along with their duties , rights and power.
  • Rights and duties of beneficiaries.

Procedure of registration with  income tax dept.
As per Rule 17A , apply  in Form 10A in duplicate to Commissioner of Income tax (Exemption) within whose jurisdiction the trust falls.  Following documents should accompany

  1. Original copy of instrument creating the trust/institution, .
  2. Documents evidencing the creation of trust/institution, with one copy thereof, where trust/institution is created otherwise than under an instrument.
  3. If the trust/institution was in existence during any year(s) prior to financial year in which application for registration is made, the application should be accompanied by two copies of accounts of trust/institution relating to prior year or years, not being more than 3 years immediately preceding the year in which application is made.

Time limit for applying for registration
Before the expiry of 1 year from the date of creation of the trust.

Google Buzz

If you found this page useful, consider linking to it.
Simply copy and paste the code below into your web site (Ctrl+C to copy)
It will look like this: How To Create Charitable Trust ?

Speak Your Mind

Tell us what you're thinking...
and oh, if you want a pic to show with your comment, go get a gravatar!