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Trust Registration in India

a Trust can be form in India -

  • as a Public (Charitable) or Private Trust
  • with Jurisdictional Registrar or Charity Commissioner
  • under Indian Trusts Act, 1882 with minimum 2 members

Trust formation in India at a glance

A Trust is registered and supervised by the Indian Trust Act, 1882. Income Tax Act, 1961, defines a Trust as “An agreement by which business is handed over to or vested in a person, to use and place of for the benefit of another person”. The creation of a Trust can be broadly divided into two methods namely

  • Public Trust (Charitable Trust); and
  • Private Trust formation.

Simply, a trust is a legally authorized body, wherein the business is transferred from its owner to the business for lawful objectives. Usually, we hear the word trust for religion or philanthropic purposes; however, there is no such stipulation. There are even sports institutions that also can be recorded as trusts.

In India, even many organizations are registered as a public philanthropic trust. Often, you’ll even hear of the prosperous creating individual trusts; this is done because of the tax-efficient creation of the trust (because dividend allowance tax or minimum alternative tax do not apply). It is the simplest way to transfer than creating a will.

However, it does much involve more work to register a trust than to print a will. Take the help of Itaxcon Consultants to form your Trust. Our Itaxcon Service is available and hassle-free.