Society/Trust/Section 8 Company

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A group of professionals planning for post-retirement social development aims to establish a Society, Trust, or Section 8 Company. Their objective is to accumulate funds over 20 years through member and public contributions, invest them in mutual funds, and then utilise the corpus for charitable activities in education or rural development. They are seeking advice on the most suitable legal structure to achieve these goals, with a suggestion favouring a Trust for its potential tax benefits on corpus donations.

yogendra singh yadav

yogendra singh yadav (Querist)
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29 August 2023 We are group of few people working in govt/private sector and will retire from our service after 20 years. After our retirement we wants to contribute our skills and expertise towards social development and for the same, we want to form a Society/Trust/Section 8 Company and want to contribute/receive donation from members/other individuals and same will be accumulated for about 20 years to create a fund by investing is some of the mutual fund schemes to start the charity work in the field of education/rural development.
Kindly explain which option will be better which allow us to achieve our objectives.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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29 August 2023 Trust will be the best option.
Contribute as corpus fund so that it will be accumulated and invested in mutual fund and no tax payable.

yogendra singh yadav

yogendra singh yadav (Querist)
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29 August 2023 Sir,
This contribution as corpus can be monthly from several members or not?
This will be treated as donation or as contribution.
Whether this contribution is allowed from trust members only or anyone can contribute/donate towards corpus .
Is there is any limit towards the members in trust who can contribute?
Please elaborate.
Sir,
Myself working in a Navratna PSU, may you please share your contact details so that I can discuss with you personally in this regards.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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29 August 2023 The Finance Bill, 2022 proposes to grant an option to the trusts or institutions referred to in section 10(23C)(v) and 11 to treat the voluntary contributions as corpus donations subject to the prescribed conditions.
I am a retired ED from central PSU.
I worked as a CFO in a charitable trust.
Take a second opinion also.
My contact number it's not allowing.
Email id rseeraman@gmail.com.

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