Income Tax Act, 1961, defines a Trust as “An arrangement by which possessions is handed over to or vested in a person, to use and dispose off for the benefit of another person”. Creation of a Trust can be broadly classified into two methods namely private trust formation and public trust formation. In this article, we look at how to register a Trust in India in detail.
A Trust is a quicker system of a registered body with limited membership. It can be a family trust or a public trust. Normally Trusts are created by dedicating some belongings to a charitable purpose, however, some cash fund may also be secure by the trust or trustees for charitable purpose while creating a trust.
The main tool of declaring a trust is the Trust Deed, which should be made on non-judicial stamp papers of, prescribed charge and signed by the trustee or trustees for submission to the Registrar concerned. In case of trust the registrar or sub-registrar having power to register properties has the authority to register the Trust Deed. Therefore, Trust Deed of the proposed Trust possibly will be registered with Tehsildar, or registrar properties and endowment at the district collectorate. In metropolitan cities separate offices of registrar of properties and endowments do function. The Trust Deed should contain name(s) of the author(s), settler(s) of the trust; the name(s) of the trustee(s); the name(s) if any, of the beneficiaries or whether it shall be community at large; name of the trust; address of the trust; objects of the trust; procedure of appointment, removal or replacement of a trustee, their rights, duties and powers, etc; the mode and method of determination of the trust etc.
Documentation for registering Trust:-
- The details of trustees like Name, Occupation, Address, Age, Father’s Name, Designation, Mobile Number, Email Address and Two Photograph are required.
- Address Proof of Trustee & Settler required: – Voter I.D / Driving license / Passport.
- Electricity Bill or House Tax Receipt or Water Bill Receipt or Ownership Proof of Property required.
- In the case of Rented, Rent Deed duly notarised with rent receipt and NOC form Land Lord on Rs 10/- Stamp Paper. Name of Landlord, Father’s name, Residence Address.
- Physical Presence of Settler/all required at the time of Registration along with Original ID.
- Physical Presence of Two witnesses with original ID Proof at the time of Registration.
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