Trust Registration

• Public Trust: For the benefit of the general public; governed by state-specific laws (Maharashtra Public Trusts Act, Gujarat Public Trusts Act, etc.)
• Private Trust: For the benefit of specific individuals or families; governed by the Indian Trusts Act 1882
• Charitable Trust: For education, poverty relief, medical aid, etc.; eligible for Section 12A and 80G tax exemptions
• Religious Trust: For religious activities and temple management; governed by Religious Endowment Acts
• Revocable Trust: Can be altered or cancelled by the settlor; Indian Trusts Act 1882
• Irrevocable Trust: Cannot be altered once formed; permanent charitable structure; Indian Trusts Act 1882

• Name and registered address of the trust
• Names and details of the settlor (creator of the trust) and all trustees
• Objects and purpose of the trust — must align with charitable purposes under Income Tax Act for 12A/80G eligibility
• Details of trust property and initial corpus amount
• Rights, duties, and powers of trustees
• Rules for addition, removal, and succession of trustees
• Mode of conducting meetings and decision-making process
• Beneficiary details and entitlements
• Dissolution clause — distribution of assets on winding up (must go to another charitable entity)

Documents Required:

• Trust Deed executed on stamp paper of appropriate value (state-specific stamp duty rates)
• PAN Card of the settlor and all trustees
• Aadhaar Card or Passport of all parties
• Address proof of registered office (electricity bill / rent agreement)
• Two passport-size photographs of all trustees
• No Objection Certificate (NOC) from property owner if office is in rented premises
• Witness signatures and their identity proof

Registration Process — 9 Steps:

1. Choose type of trust — public, private, charitable, or religious
2. Draft Trust Deed with all required clauses on appropriate stamp paper
3. Appoint trustees — minimum 2; obtain written consent of all trustees
4. Schedule appointment at Sub-Registrar's office (in the district where registered office is located)
5. Visit Sub-Registrar with original Trust Deed and all trustees physically present
6. Sub-Registrar verifies documents, witnesses sign, deed is officially registered
7. Obtain Trust Registration Certificate from Sub-Registrar
8. Apply for PAN Card in the trust's name
9. Open bank account; apply for 12A, 80G, Darpan as applicable

• ITR-7: Annual income tax return filing (due 31st October or 30th November for audit cases)
• Form 10B audit report: Mandatory if income exceeds Rs.2.5 lakhs; filed by a Chartered Accountant
• 12A & 80G renewal: Renew before expiry — valid for 5 years, renewed via Form 10AB
• Maintain proper books of accounts, trustee meeting minutes, and beneficiary registers
• Comply with TDS provisions — deduct and deposit TDS on salaries, professional fees, and rent
• FCRA compliance: FC-4 annual return by 31st December for trusts receiving foreign contributions
• File with state Charity Commissioner (applicable in Maharashtra, Gujarat, Rajasthan, Tamil Nadu, etc.)

Q: Can a trust own property in its own name?
Yes. A registered trust is a legal entity capable of owning immovable property, entering contracts, maintaining bank accounts, and suing or being sued in its own name. The property held by the trust belongs to the trust — not to individual trustees personally.

Q: What is the stamp duty on a Trust Deed?
Stamp duty on a Trust Deed varies by state. In Delhi, it is Rs.100. In Maharashtra, it is based on the trust property value. In Rajasthan, it is typically Rs.1,000–5,000. MFiling advises on the applicable stamp duty in your state before drafting the deed.

Q: Can trustees be removed from a trust?
Removal of trustees depends on the Trust Deed provisions and applicable state law. In most states, trustee removal requires a court order unless the Trust Deed specifically provides for a removal mechanism. MFiling recommends including a clear removal and succession clause in all Trust Deeds at formation to avoid future complications.