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Closure of trust

Nishtha Narielwala (Tax Consultant) (131 Points)

12 March 2012

Hi,

Can anyone please tell me what is the procedure for closure of a Trust in India?

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Kolluru Krishna Murty (Partner) (315 Points)
Replied 15 March 2012

Briefly I would mention the procedure,but you may have to consult an expert:

1.Pass a resolution to close the trust justifying reasons so to do.

2.Decide about the surrender of the Investments to a trust carrying on similar activities.

3.Send a letter to the said trust informing your intention to give the funds.

4.Simultaneously apply to CIT of your jurisdiction requesting for permission to close the trust,if it is a trust recognized by CIT and also to the Registrar of Societies or similar authority of the State about your intentions and seek his permission.

5.On in-principal permission from CIT pass on the funds to the said trust.

6.After all these steps you have to formally get nod from CIT and Registrar.

kkm

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