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Procedure for registration of trust or society

Shruti (Proprietor) (25 Points)

21 September 2016

An association of people gathering together to help the poor by providing basics neccessities is a trust or a society? what is the process for the same for bihar and what are the documents to be collected from the client?

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4 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (195787 Points)
Replied 22 September 2016

Usually such activities are carried out by formation of Trust.

The instrument by which trust is created is called as Trust Deed. Although it is not mandatory for trusts to enter into such deed agreement, but the same is needed to get the registered under the Income Tax Act for availing the exemptions and more over a deed is a prima facie evidence of the existence of a trust.

The name(s) of the author(s)/settlor(s) of the trust.
The name(s) of the trustee(s).
The name(s) if any, of the beneficiary/ies or whether it shall be the public at large. xv. The name by which the trust shall be known.
The name where its principal and/or other offices shall be situated.
The property that shall devolve upon the trustee(s) under the trust for the benefit of the beneficiary/ies.
An intention to divest the trust property upon the trustee(s).
The objects of the trust.
The procedure for appointment, removal or replacement of a trustee, their rights, duties and powers etc.
The rights and duties of the beneficiary/ies.
The mode and method of determination of the trust.

Shruti (Proprietor) (25 Points)
Replied 22 September 2016

but the definition of society in societies act is also similar to the nature of operations as i have specified...kindly clarify...

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (195787 Points)
Replied 22 September 2016

Benefits to trust under IT are more to such activities then in society.

CA Rachit Agrawal (CA Practice) (400 Points)
Replied 05 December 2016

Sir,please let me know that Property which i want to transfer in the Trust,when should i transfer i.e. i should transfer the property before registration of trust or after registration of trust?

Thanking you.