Trust must be registered in some cases and not in others. Let’s look at some situations where trust registration is mandatory. It is mandatory to register a trust in the following cases: Whenever a trust is declared, it is called the Trust Deed or Instrument of Trust. According to Section 5 of the Indian Trusts Act, a private trust relating to immovable property must be created by a non-testamentary instrument signed by either the author or the trustee. There are a number of documents that are compulsory to be registered as part of Section 17 of the Indian Registration Act […]
Dissolution vs De-registration of Trust
Getting started Because trusts are perpetual entities, the concept of deregistration was unknown up until 2016. However, in 2016, by ordinance and then by amendment, a specific provision for deregistration of registered trusts was enacted. De-registration proceedings do not involve Trustees’ willingness, whereas dissolution of trusts depends on the provisions of the Trust deed and involves mutual consent by the Trustees. Trusts Can Be De-registered for the Following Reasons: Subsection 3A of section 22 of the Maharashtra Public Trusts Act, 1950, provides for the de-registration of trust in five circumstances: After an impartial and detailed inquiry, the Deputy or Assistant […]
What is a Trust in India? & Advantages of Creating a Trust in India
How to Form an Indian Trust and Information about Trust Registration in India? In India, any person who has the right to contract can establish a public charitable trust that would benefit the poor, educate, treat them medically, and advance any cause of public benefit, among other things. There are two types of public trusts: registered and unregistered. Information on Trust Registration Certificates, How to form a Trust in India. Getting started Getting a Trust registered in India begins with writing a Trust Deed. The primary requirement for registering a Trust in India is the Trust Deed. Each state sets […]
Violations of Trust Registration Compliance Penalties
Penalties for civil and criminal offenses There is both a civil and criminal penalty for violating the provisions of the Trust deed. Sections 405 to 409 of the Indian Penal Code 1860 specify the punishment for criminal breaches of Trust. An application for a Tax Deduction Account Number Upon registration, a Trust or Institution should apply to the Assessing Officer for a tax deduction account number. For this purpose, the Trust or Institution can use form 49B provided by the IT department. All challans for payment of sum u/s 200 and TDS certificate, as well as returns u/s 206, 206A, […]