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karnav shah (Executive MBA (Criminology) MBA (Finance) Doctorate (Management))     13 April 2011

Which kind of of Trust is most suitable?

hi

I have a cause to support and peopel o support my cause. I wish to operate without any barrier to achieve my social objective.

if i have A person to Donate to My ABC Trust (Private) do I have to make any publich disclosure? and Am I liable to some TAX? 

 

Is there any restriction over private trust property?

 

your advise is appreciatable.

karnav shah



Learning

 4 Replies

Manish Singh (Advocate)     13 April 2011

if you want to support and help public at large, then you you will have to form a public charitable trust.

Once you get exemption certificate from the IT Dept., trust income shall not be taxed following certain conditions of the IT Act.

karnav shah (Executive MBA (Criminology) MBA (Finance) Doctorate (Management))     13 April 2011

I have spend 4 year in australia working with an NGO, the style of work i have adopted from that nation is half corporate whereas people consider case professionally and speed of achievement remain fast.

There is a range of selected professional TEAM i wish to have on board however they will have expectation and since i understand the conept of social work it is more like social entrepreneurship.

I am not sure but having public trust means lot of interfearence from the government, RTI and other things whereas in private Trust or sort of Private foundation, The probability of dirty politics is ZERO and utilization of fund remains very much focused and objective to the goals of trust.

Saving a TAX if takes independency of operation of trust, I think TAX is not an issue but preservation, control and use of fund in a right direction is important. If i have 1 caror personal fund where it is advisable to put in private or public? As I dont want to lose control over the fund to use it in exact what and where i want to implant social change.?

S. P. ASHOK (Advocate Bombay High Court 8450920005 advocatespashok@gmail.com)     13 April 2011

First of all , you should decide the beneficiaries of the Trust. A Trust may be Private and Public.  If you want to help public at large, you can make public trust.  If you want to give benefit to an individual or selected group, you can make private trust. For the purpose of controlling fund, you can not make private trust and do social work for public at large.

Manish Singh (Advocate)     13 April 2011

Do not worry. Making a public trust does not means interference by government unless you get substantial grant from the Government.

You can operate it as a private body of individuals in the form of trustee and may have your trust deed drafted in such a way.

It is always advisable to have IT exemption since that only burdens you to spend most of the amount on charitable purposes while fulfilling some other conditions.


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