Charitable trust

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

10 August 2013 our client is registered as charitable trust since 2008 having number prefixed by "E" with charitable commissioner . the said trust intends to work for new objects which were not mentioned in trust deed submitted at the time of registration . can we add new objects? If, yes what will be the procedure?

please reply soon.waiting for your answer....

Querist : Anonymous

Querist : Anonymous (Querist)

11 August 2013 please reply soon..............

Querist : Anonymous

Querist : Anonymous (Querist)

16 August 2013 please , anybody can help me regarding above query........? still waiting for reply........

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
Follow

19 July 2024 Yes, it is possible for a charitable trust to add new objects or amend its existing objects as per its evolving activities or goals. Here’s the procedure you should follow to add new objects to the trust:

### Procedure to Add New Objects to a Charitable Trust

1. **Board Resolution:**
- Hold a meeting of the Board of Trustees of the charitable trust.
- Pass a resolution approving the addition of new objects to the trust. The resolution should clearly state the new objects that are proposed to be added.

2. **Amendment of Trust Deed:**
- Prepare a draft amendment to the original Trust Deed, specifying the new objects that are to be added. The Trust Deed is the primary document governing the operations and objectives of the trust.

3. **Approval of Charity Commissioner:**
- Obtain consent from the Charity Commissioner under whose jurisdiction the trust is registered. This involves submitting an application along with the following documents:
- Certified copy of the Board resolution approving the amendment.
- Draft amended Trust Deed reflecting the new objects.
- Any other documents as required by the Charity Commissioner.

4. **Publication in Official Gazette:**
- After receiving approval from the Charity Commissioner, publish a notice regarding the amendment of the Trust Deed in the Official Gazette or a local newspaper as required by local regulations.

5. **Registration of Amended Trust Deed:**
- Once the notice period (if any) has elapsed and there are no objections or after addressing any objections raised, register the amended Trust Deed with the Charity Commissioner.

6. **Intimation to Income Tax Authorities:**
- Inform the Income Tax authorities about the changes in the trust’s objectives, especially if there are implications for tax exemptions or approvals under Section 12A or 80G of the Income Tax Act, 1961.

### Important Considerations

- **Legal Advice:** It’s advisable to seek legal advice or assistance from a lawyer experienced in trust matters to ensure compliance with local laws and regulations.

- **Documentation:** Ensure all documents are accurately drafted and submitted to avoid delays or objections during the approval process.

- **Tax Implications:** Consider how the new objects may affect the tax status of the trust and consult with a tax advisor if necessary.

By following these steps diligently and obtaining the necessary approvals, your client’s charitable trust can effectively add new objects and expand its scope of activities to align with its evolving mission and objectives.

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