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Creation of trust

Harsh Vardhan Gautam (Sr.Manager) (32 Points)

06 February 2012

I want to create a charitable trust in faridabad, so anybode can sugest what is the procidure, Out of 9 members of this trust 3 are not belong from haryana

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2 Replies

Kolluru Krishna Murty (Partner) (315 Points)
Replied 13 February 2012

Noble thought Sir.

The following steps may be followed:

1.Decide the broad objectives of the Trust to be pursued.

Normally the objective should not be related to a specific caste,creed,religion,area,colour etc,.

2.Please get a copy of model Trust Deed to be followed.

While choosing so please keep in mind the model broadly suits your requirements.

3.Get the Trust deed drafted on a Stamp paper of appropriate value depending on the Rules of the State where you are going to register the Trust.While drafting so please keep in mind the objectives are taken care,trustees are decided and management Trustees are identified etc,.

4.Decide on under what legislation you wish to register the trust like Sec 25 of Companies Act,Societies Registration Act of the respective State where you wish to get it registered, Indian Trust act etc,.

Normally it is registered under Societies Registration Act of the respective State.

5.Get it registered with the Registrar of Societies of the State Govt of the jurisdiction where you want to get it registered.

6.Obtain Registration Certificate from the registrar .

7.Apply for PAN duly submitting the registered Trust Deed and other required info.

8.Apply to the Commissioner Of income Tax of the jurisdiction for Exemption under 80-G and 12-A of Income Tax Act duly submitting the Registered Trust Deed,PAN Card,Undertaking from the Trustees to act as Trustees,Undertaking that they they would follow the Provisions of IT Act for Investment of Funds of the Trust etc , and obtain the Certificate from CIT under Sec 12-A and 80-G.

This is very broad procedure .Hope this gives an idea to the reader.

kkm