Voluntary dissolution of a trust

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suresh

suresh (Querist)
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21 September 2018 what is the procedure for voluntary dissolution of a trust?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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21 September 2018 In case of charitable trust donate assets to another charitable trust having similar objects.

suresh

suresh (Querist)
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22 September 2018 yes i know that sir .. but i need entire procedure to dissolve a trust, like applying to registrar , surrendering pan etc .,
sir ,please give me entire information you know about voluntary dissolution of a trust.

Aashok Kumar Sharma online

Aashok Kumar Sharma online

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03 August 2025 Here’s a clear step-by-step guide for the voluntary dissolution of a Trust in India:
1. Check Trust Deed for Dissolution Clause
First, review the Trust Deed for any specific provisions related to dissolution. Most trust deeds specify the procedure for winding up, including how assets should be dealt with.
2. Decision for Dissolution
The trustees need to pass a resolution agreeing to voluntarily dissolve the trust as per the terms of the Trust Deed.
3. Settlement of Liabilities
Ensure all liabilities, debts, and obligations of the trust are settled before dissolution.
4. Disposal of Assets
Transfer remaining assets to another trust or charitable organization having similar objectives, as per the Trust Deed or as directed by law.
5. Prepare Dissolution Documents
Prepare necessary documents like:
Trustees’ resolution for dissolution
Final accounts and audit report (if applicable)
Asset transfer documents
6. Inform Registrars and Authorities
If the trust is registered, send an application for dissolution to the Charity Commissioner or Registrar of Trusts under whose jurisdiction the trust is registered. Include:
Copy of resolution
Final accounts
Details of asset transfer
Request for cancellation of registration
7. Surrender PAN and Other Registrations
Apply for cancellation of PAN of the trust through the Income Tax Department.
Cancel any other registrations such as:
Income Tax exemptions (80G, 12A, etc.)
GST registration (if applicable)
Any other applicable licenses
8. File Final Returns
File final Income Tax return and other applicable returns till the date of dissolution.
9. Get Confirmation
Obtain formal confirmation from the Registrar or Charity Commissioner for dissolution.
Summary Table:
Step Action
1. Review Trust Deed Check dissolution clause
2. Trustee Resolution Pass resolution for voluntary dissolution
3. Settle Liabilities Clear all debts and obligations
4. Asset Transfer Transfer assets to similar charitable trust
5. Prepare Documents Resolution, final accounts, asset transfer docs
6. Inform Authorities Apply to Registrar/Charity Commissioner
7. Surrender Registrations PAN, 80G, GST, etc.
8. File Final Returns Income Tax and others
9. Obtain Confirmation Receive dissolution confirmation

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