For formation of trust

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This query is : Resolved

SONIKA (Querist)

21 February 2012 Sir, i want to create a Trust which will accept donation from the doners for the purpose of providing medical facilities in rural area and the doner can claim deduction for tax in income tax. so please tell me whats the procedure for formation of trust and which document will be required for formation of trust

Yogesh Agarwal

Yogesh Agarwal (Expert)

21 February 2012 Dear Sonika

you need to apply to Commissioner of Income Tax falling under the jurisdiction of your trust under section 12A.

Section 12AA - on receipt of the application so filed by you a CIT shall call for the documents and information to satisfy himself with regard to trust.

Once he is satisfied with genuineness of trust objective and others he will pass an order in writing registering your trust and if not satisfied then pass an order for refusing to do so.

In order to avail the deduction of donation made by donor you have to take registration for deduction u/s 80G(5)...

Nowadays once you get such certificate u/s 80G(5) its validity will go on in perpetuity basis untill the CIT withdraw the benefit in writing.

SONIKA

SONIKA (Querist)

21 February 2012 thanking you sir, please clear me for which information and documents CIT can call.

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)

21 February 2012 thanks expert for well explanation.

dear author,

CIT RIGHTS FOR ASK:

Objects of the trust

Movable property with estimated value of each class
of such property

Details of immovable properties showing the
village or town where situate, along with C. S.,
Municipal or Survey No., area, assessment or Judi
and description of the tenure on which held (attach
certified copies of the entries in the Record of Rights,

Estimated value of each immovable property

Sources of income of the trust,IF CIT thinks fits.

regards,

for more info:

https://www.caclubindia.com/share_files/ngo-registration-36660.asp

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