Registration of Public Charitable Trust

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Querist : Anonymous

Querist : Anonymous (Querist)

15 February 2010 We are planning to creat a public charitable trust and get it registered u/s 12AA of the I.T. Act., what is the format of TRUST DEED, so that there should not be any problem for registration u/s 12AA, where trust deed can be registered , how much stamp duty is to be paid, minimum requirment of members, settlor, trustee etc.

CA krishna Kamthe

CA krishna Kamthe (Expert)
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16 February 2010 why you are anoymous if you need detail you should discolse yourself this is forum which have transperant knowldge shareing.

Asha Kanta Sharma online

Asha Kanta Sharma online

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20 July 2025 You're planning to create a Public Charitable Trust and register it under Section 12AA (now 12AB) of the Income Tax Act, which is essential for availing income tax exemptions.

Here’s a complete guide including:

Trust Deed format
Registration process
Stamp duty
Minimum member requirements
How to ensure smooth 12AA/12AB registration
✅ 1. Format of Trust Deed for 12AA Registration

A well-drafted Trust Deed is the most important document — it's mandatory for registration under the Indian Trusts Act, 1882 and for getting 12AA/12AB exemption.

📜 Essential Clauses in the Trust Deed:
Name of the Trust
Objects (charitable only) – clearly mention:
Education
Medical relief
Poverty alleviation
Environment
Women empowerment, etc.
Details of Settlor and Trustees
Initial Corpus (typically ₹1,000 or more)
Powers and duties of Trustees
Management and meeting rules
Amendment clause (with consent of majority or court)
Beneficiaries – the public at large (not private individuals)
Clause stating: “Trust is irrevocable”
Utilization of funds clause – must not benefit any specific individual.
Dissolution clause – on winding up, remaining assets shall go to another charitable trust.
✅ Pro tip: Do not include any non-charitable object, otherwise your 12AA application can be rejected.
✅ 2. Where to Register the Trust Deed

You must register the Trust Deed with the Sub-Registrar of the area where the trust’s registered office is located.
Trust registration under Indian Trusts Act is done at the state level — governed by local stamp laws.
✅ 3. Stamp Duty for Trust Deed (Varies by State)

State Approx Stamp Duty
Delhi ₹500 + ₹100 reg. fee
Maharashtra ₹500 + ₹100 reg. fee
Rajasthan ₹500 (if immovable property not involved)
Tamil Nadu ₹180
Gujarat ₹100
If the trust includes immovable property, stamp duty is higher and depends on property value.
✅ 4. Minimum Requirements

Role Minimum Required Notes
Settlor 1 Person creating the trust; must sign deed
Trustees At least 2 No max limit; should not be related ideally
Corpus ₹1,000 (suggested) Can be more
Trustees must be Indian residents, especially at the time of formation.
Settlor can also be a trustee, but not mandatory.
✅ 5. Process for 12AA / 12AB Registration

After trust is registered with Sub-Registrar:
Apply for PAN of the trust.
File application for registration under Section 12AB (new regime replacing 12AA).
Use Form 10A (if it's a new trust)
File online on https://www.incometax.gov.in
Upload scanned copy of:
Registered trust deed
PAN card of trust
Details of trustees
Bank account proof
Activity report (if applicable)
The Commissioner of Income Tax (Exemptions) may ask for clarification or call for a hearing.
If approved, you’ll receive a 12AB Registration Certificate.
🔎 12AA is no longer granted after 31 March 2021 — now replaced with 12AB.
✅ Summary Table

Task Details
Trust Deed Format Must include charitable objects, dissolution clause, etc.
Stamp Duty ₹100 – ₹500 approx (state-specific)
Trustees Required Minimum 2
Settlor Required 1
Trust Registration Sub-Registrar office (state-specific)
Income Tax Registration Apply via Form 10A for 12AB
PAN for Trust Mandatory before applying for 12AB

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