REGARDING TRUST

Here is a comprehensive overview of trust registration and compliance in India:

1. Registration Options:
- Under Indian Trusts Act, 1882: For private trusts — registered with Sub-Registrar of Assurances via a registered trust deed.
- Under Section 12A/12AB of IT Act: For charitable/religious trusts seeking income tax exemption — apply on IT portal via Form 10A (new registration) or Form 10AB (renewal).
- Under Foreign Contribution (Regulation) Act (FCRA): If the trust intends to receive foreign contributions.
- Under Societies Registration Act: Applicable in some states for institutions.

2. Key IT Compliances for Registered Trusts (12AB):
- File ITR-7 annually by 31st October (or 30th November if audit applicable).
- Get accounts audited if gross receipts exceed Rs. 2.5 lakh (Section 12A read with Section 12AB).
- File Form 9A (deemed application for accumulation) and Form 10 (accumulation notice) if more than 15% of income is to be accumulated.
- File Form 10B/10BB (audit report) before filing ITR.

3. Application of Income: At least 85% of income must be applied for charitable purposes during the year. If not applied, accumulate with proper intimation (Form 9A/10) for up to 5 years.

4. Prohibited Activities: No part of income should benefit any trustee/person having substantial interest. No business activity (other than incidental to objects). Foreign travel restrictions for trustees.

5. If specific issue (registration rejected, income computation, corpus treatment) — share more details for precise guidance.

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MAHESH

Aashok Kumar Sharma

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