Home > Experts > Income Tax > specimen of formation of charitable trust and objects


Please Wait ..

Sign-in to your account


Username:
Password:

Remember Me

Forgot your password?

Sign-up now



Join CAclubindia.com and Share your Knowledge. Registered members get a chance to interact at Forum, Ask Query, Comment etc.


specimen of formation of charitable trust and objects (Income Tax)

Report Abuse
This query is : Resolved



( Author )
15 November 2010

Can anyone provide with the specimen of formation of Charitable trust and objects

Thank You


CA. SANAT PYNE

( Expert )
15 November 2010

DEED OF TRUST


This DEED OF DECLARATION OF TRUST executed at
on this day of by

hereinafter called as AUTHOR OF THE TRUST which expression shall wherever the context so permits mean and include its successors –in-office of the ONE PART and;

WHEREAS the AUTHOR OF THE TRUST decided to create and establish a Trust to make research in Alternative Medicine and Acupuncture for the welfare of the community at large without discrimination of caste. creed etc with objects and constitution as hereinafter set forth;

WHEREAS the said objects in view, the AUTHOR OF TRUST have decided to endow the said TRUST a nucleus of Rs. (Rupees only) in cash; and

WHEREAS it is necessary and desirable to declare and constitute the said Trust and to record the objects and constitution of the said Trust.

NOW THIS DEED OF DECLARTION OF TRUST WITNESSETH AS FOLLOWS;

1.TRUSTEES mean and include the Board of Trustees as described in these presents, and these Trustees, as appointed, nominated or selected by the remaining members of the Board of Trust whenever any vacancy arises.

2.CREATION OF THE TRUST:

In pursuance of the intention, the AUTHOR OF TRUST has settled the sum of Rs._____ by cash unto and in favour of the Trustees herein to be held by them for and on behalf of the Trust hereby created and known as “ ” the receipt of which sum of Rs. which has already been handed over to the Trustees mentioned hereunder, is hereby acknowledged by the Trustees, who hereby accept the appointment as such Trustees of the said Trust, under the terms and conditions, set out hereunder for the fulfillment of the objects of the Trust, more fully and particularly described and set out hereunder.

3. REGISTERED OFFICE OF THE TRUST:

The registered office of the Trust is situated at present at No.

4.TRUSTEES:

The AUTHOR OF THE TRUST has appointed the following persons to hold the office of the
Trust as Trustees:

5.1. MOTTO OF THE TRUST:

The Motto of the Trust is

5.2. OBJECTS OF THE TRUST:

The objects of the Trust are. -


5.3.BENEFIT OF THE TRUST:

The Benefits of the Trust are open to all irrespective of Caste, religion, race, sex etc. That the Trust will not carry on any activities with an intention of earning profit.


6. THE PROPERTIES OF THE TRUST

The properties of the Trust shall be.-

(a) the said sum of Rs. above referred to the receipt of which is hereby acknowledged by the Trustees;

(b) any properties movable or immovable, that may be acquired by the Trust either by purchase or otherwise;

(c) all additions and acceptations to the Trust fund;

(d) all voluntary donations both towards corpus or otherwise gifts, legacies or grants in cash or in kind accepted by the trustees;

(e) all grants and contributions made to the Trust by the Government, Government bodies, Trust or Institutions, Trade Union or Societies etc; and

(f) all sums and assets which by and means become the property of the Trust.



7. QUALIFICATION OF THE TRUSTEES:

The qualification for the trustees shall be

a) One Trustee shall possess qualification in alternative medicine or acupuncture;
b) One may be Specialist in yoga therapy;
c) Other trustees shall be social workers or professionals in the field of medicine or accounts or law.

8. CESSATION OF TRUSTEESHIP:

A Trustee mentioned below shall cease to be the trustee of the Trust if:-

(a) he resigns;
(b) he becomes insolvent;
(c) He is removed by the majority of the members of the, if it is found that the trustee(s) activities are detrimental to the activities or administration or funds of the Trust

9.APPOINTMENT OF TRUSTEES:

Any vacancy in the Board of Trustees shall be filled up by the remaining members of the Trust selecting a suitable person.


10. ADMINISTRATION OF THE TRUST;

The administration of the TRUST shall vest with the Board of Trustees, which consist of.-

a) One Managing Trustee;
b) One Joint Managing Trustee;
c) One Deputy Managing Trustee and three trustees


11. POWER OF THE TRUSTEES;

The Board of Trustees shall have the control and management of the Trust and exercise the following powers:

a) To determine from time to time to commence and to take up the object and purposes for which the funds of the trust shall be used and allot and allocate to each of the objects such portion of the funds as they deem fit;
b) To purchase and acquire any immovable property of any kind for this object of the Trust or as a source of income for the Trust;
c) To sell, mortgage, or dispose of any immovable property/properties belonging to the Trust;
d) To incur all expenditure necessary as in their own opinion useful for carrying out the objects and administration of the trust;
e) To sell, lease, mortgage or dispose of any property, immovable property/properties belonging to the Trust’
f) To open one or more bank accounts of the trust with any bank or banks as the Trustees may deem fit and deposit monies of the Trust in the Bank accounts.
g) To borrow for and on behalf of the Trust with or without security from banks, Governments, Universities or any other government Body/bodies both central and state;
h) to employ staff of all kinds necessary and useful for carrying out the objects of the trust.
i) To incur such other items of expenditure as is necessary and incidental for carrying out the objects of the Trust;
j) To institute, conduct, defend, compound, withdraw, compromise, adjust, refer to arbitration or to do such things as are incidental and necessary, concerning the affairs of the Trust and to sign and verify vakalats, pleadings, affidavits and other powers’
k) To delegate all or any of the powers vested in the Trustees to any body’ to frame rules, bylaws and other codes for the conduct of the affairs of the Trust and its transactions and establishing any Committee;
l) To accept contributions in cash or in kind either by way of addition to the trust funds generally or for any one or more of the specified objects of the Trust.
m) To establish as many adhoc committees for any purpose.

12. Meetings of the Trustees:

a) The Managing Trustee shall preside over all the meetings of the trustees and in his absence the Joint Managing Trustee shall preside such meeting and in the absence of both, the trustees attended such meeting may elect any one of them to preside over the meeting;
b) The meetings of the Trustees may be convened by the Managing Trustee or under his direction by any other Trustees
c) The quorum of the meeting of the Trustees shall be four personally present.
d) In the event of equality of votes, the person presiding such meeting shall exercise casting vote (additional vote).

13. RESOLUTIONS:

a) The Trustees may exercise all the powers vested in them in clause 9 under these presents by resolution passed at a simple majority of the trustees attended such meetings of the Board of Trustees.
b) Any resolution in writing signed by all Trustees holding office for the time being shall be valid and binding.





14. SUITS:

The Managing Trustee of the Trust is authorized to sue or to be sued on behalf of the Trust.

15. Execution of Documents:

All Deeds, Documents etc. shall be executed by the Managing Trustee, Joint Managing Trustee and Deputy Managing Trustee jointly representing the Trust.

16. ACCOUNTS AND AUDIT:

a) The Trustees shall maintain true and correct accounts of all Trust monies and of all the income and investments and all the outgoing expenses.
b) The year of account shall be the financial year commencing from 1st APRIL and ending 31st March.
c) The Trustees shall each year issue a report setting out the accounts showing the income and expenditure of the Trust for the preceding year not later than six months from the end of the preceding year of accounts.
d) The accounts of the Trust shall be audited every year by a Chartered Accountant who may be appointed for the purpose by the board of Trustees and the audited statement of accounts together with Auditors’ report shall be laid before the Board of Trustees for approval.

17. BANK ACCOUNT:

The Managing Trustee along with the Deputy Managing Trustee shall operate bank account(s) jointly.

18. POWER TO ALTER RULES AND REGULATIONS:

The Board of Trustees shall have full power and authority to make, alter and rescind rules and regulations for the management and administration of the Trust. Any amendment to the Trust Deed will be carried out only with the approval of the Commissioner of Income Tax.


19. APPLICATION OF INCOME AND TRUST FUND:

The Board of Trustees shall be empowered to invest the funds of the Trust in movable or immovable properties, in such manner as they deem fit for the purpose of the objects of the trust provided that such investments shall be in accordance with the provision of Section 13(I) read with Section 11(5) of the Income Tax Act, 1961 as well as of any other law for the time being in force as are applicable to charitable trusts.


20. REMUNERTION TO THE TRUSTEES:

The Trustees are not entitled for any remuneration. But they shall however be entitled to receive out of pocket expenses incurred by them in the course of discharging the functions of the Trust. Further the Income and funds of the Trust will be solely utilized towards the objects and no portion of it will be utilized for payment of Trustees by way profits, interest, dividend or otherwise.


21. INDEMNITY:

Every Trustee shall be indemnified out of the fund in respect of any loss arising from or contingent upon any investment made out of the monies of the Trust unless such loss shall have been occasioned by own negligence and also every Trustee shall be indemnified out of the Trust against all proceedings, suits, claims, costs, damages and expenses occasioned by any claim in connection with the matters or affairs relating to the Trust created by these presents or in the exercise of powers or discretion vested in them by virtue of these presents.

22. IRREVOCABILITY:

The Trust is irrevocable.

23. ACTIVITIES OF THE TRUST:

The activities of the Trust shall be only within India and its Union territories and shall not be extended anywhere outside India.

24. DISSOLUTION:

On dissolution of the Trust, the net assets of the Trust shall be transferred to an association of persons or trust or society having similar objects of this Trust.


25. PROCEEDING OF THE TRUST:

Any defect in the constitution of the Trust shall not invalidate its proceedings

26. RESIDUARY:

For matters not provided for in these presents, the provisions of the Indian Trust Act and the Income Tax Act,1961 and rules made there under will apply accordingly.

IN WITNESS WHEREOF THE AUTHOIR OF THE TRUST HAS SET HIS HAND AND SIGNATURE ON THE DAY, MONTH AND YEAR FIRST ABOVE WRITTEN IN THE PRESENCE OF

WITNESSES: -


AUTHOR OF THE TRUST






Drafted by:



Previous

Next

You need to be the querist or approved CAclub expert to take part in this query .


Click here to login ( Members Login ) now


Similar Resolved Queries :








submit










Quick Links





back to the top