Dear Experts,
I want to register a Public Charitable Trust in Delhi. I have basic knowledge about registration of Trust but not all practical aspect of registration.
So anyone may describe the detail practical procedure.
Thanks.
A Charitable Trust is a Trust wherein the purpose of the Trust is directed to the benefit of the community or a section of the community, as distinguished from an individual or a group of individuals.For Registering such Trust , minimum 2 Trustees have to be there and anyone of them can become the Settlor of the trust. Trustees can be individuals, Companies or LLPs. Registered office of that Trust may be either a residential or a commercial place,however,valid proof of such address is required . After giving a name to that Trust,a trust deed containing Memorandum of Association,Objects,beneficiaries,rules,regulations and bye Laws for operation of such trust has to be drafted and the trust deed should have provision regarding the procedure of appointing or removing the Trustees. The Trust Deed is required to be executed by the Settlor and the Founder trustees in presence of atleast two witnesses and on requisite value of non judicial stamp paper (so to be assessed by the concerned Registry office of Delhi taking into consideration the Market value of the assets of the Trust).Stamp Duty and the Registration Fee nowasays mostly paid in online.At the time of registration of that Trust Deed,the xerox and self attested copies of identity proofs (PAN Card,Aadhar Card etc) of all the parties and two sets of coloured passport size photographs of each of the parties are required to present that Trust Deed for registration before the Registrar along with Fingerprinting of all the Parties.After completion of Registration as well as scanning and recording of the same in CD Volume,the Registry office will return the Original Trust Deed with valid proof of registration number and the registration certificate will be issued within a minimum of seven working days. The next step is to apply for allotment of PAN Number and TAN and thereafter to open a bank A/c in the name of that Trust .There is no prohibition on a charitable trust from carrying on business. The income from a business conducted by a charitable trust shall also qualify for tax exemption provided certain criteria’s are fulfilled. In addition, any income of a charitable trust shall not qualify for tax exemption unless the business is incidental to the attainment of the objects of the Trust and separate books of account are maintained in respect of such business. For instance, if a charitable trust is established for medical relief, then the manufacturing of medicines, the running of dispensary or a hospital, or a nursing home shall be considered to be a business incidental to the objective of the charitable Trust.The charitable Trust is entitled to tax exemption under section 11 and section 12 of the Income Tax Act., on fulfillment of certain conditions.
