{"id":41979,"date":"2022-04-07T12:20:12","date_gmt":"2022-04-07T06:50:12","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=41979"},"modified":"2022-04-07T18:25:05","modified_gmt":"2022-04-07T12:55:05","slug":"charitable-trust-in-india","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/charitable-trust-in-india\/","title":{"rendered":"Charitable Trust in India"},"content":{"rendered":"\n<p class=\"has-drop-cap\">In a trust, the\nowner can transfer the property to a trustee for the benefit of the beneficiary\nor beneficiaries. Trusts are irrevocable and cannot be amended or terminated\nwithout an order of the court. Trusts are registered with limited members for\nsome charitable purpose under state laws.&nbsp;<\/p>\n\n\n\n<p>Trusts can be\nPrivate, or Public Trust and Public Trusts are further classified as Charitable\nTrust or Religious Trust.&nbsp;<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/charitable-trust-in-india\/#Introduction_to_Charitable_Trust\" >Introduction to Charitable Trust<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/charitable-trust-in-india\/#Types_of_Charitable_trust_in_India\" >Types of Charitable trust in India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/charitable-trust-in-india\/#Essential_elements_of_Charitable_Trust\" >Essential elements of Charitable Trust<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/charitable-trust-in-india\/#The_procedure_to_register_a_Charitable_Trust\" >The procedure to register a Charitable Trust<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/charitable-trust-in-india\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Introduction_to_Charitable_Trust\"><\/span><strong>Introduction to Charitable Trust<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>As the name\nsuggests, charitable trusts are for the benefit of people. They are\nincorporated to uplift the people who are not able to help themselves. Their\nfocus area is poverty, illiteracy, public health, religious practices and other\ncharitable purposes.&nbsp;<\/p>\n\n\n\n<p>These are\ncertain reasons for the creation of Charitable trust:&nbsp;<\/p>\n\n\n\n<ul><li>Public benefit<\/li><li>Perpetual existence<\/li><li>Tax exemption<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Types_of_Charitable_trust_in_India\"><\/span><strong>Types of Charitable trust in India<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>These are two\ntypes of charitable trusts which mirror each other, but they serve different\nneeds. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Charitable lead trust&nbsp;<\/strong><\/h3>\n\n\n\n<p>This type of charitable\ntrust distributes the portion of its proceeds to a charity, and the remainder\nof the principal is then divided among the beneficiaries.&nbsp;<\/p>\n\n\n\n<p>Here the donor\nhas control over the trust property. Any interest which comes from the assets\nof the trust goes to charity or is divided between charity or the beneficiary\nof the trust. After termination of the trust, the donation goes to the person\nof the donor\u2019s choice and not to the charity.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Charitable remainder trust&nbsp;<\/strong><\/h3>\n\n\n\n<p>In this type of\ncharitable trust, one can receive income from the distribution of assets that\nhe puts in the trust earlier; these assets are the non-income-producing\nassets.&nbsp;<\/p>\n\n\n\n<p>Here the assets\nare signed to a charity for a specific period, and once this time period is\nover, the charity gets complete control over the assets of the trust with the\ninterest or profit they have generated. The term specified can be for some\nyears or till the death of the donor.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Essential_elements_of_Charitable_Trust\"><\/span><strong>Essential elements of Charitable Trust<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>An author who creates the trust&nbsp;<\/li><li>A trustee who is responsible for the trust\n     property<\/li><li>A beneficiary who gets the benefit from the\n     trust property<\/li><li>The property used for the creation of trust<\/li><li>A clear objective for the creation of trust<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_procedure_to_register_a_Charitable_Trust\"><\/span><strong>The procedure to register a Charitable Trust<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The Act that governs the charitable trusts is the Indian <strong>Trust Act, 1882<\/strong><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/Indian_Trusts_Act,_1882\"><strong>[1]<\/strong><\/a><\/sup><strong>,<\/strong> but each state has its own rules to govern trusts which are created in their own state. A charitable trust should be registered with the office of charity commissioner of the jurisdiction of the trust.&nbsp;&nbsp;<\/p>\n\n\n\n<p>Followings are the <a href=\"https:\/\/corpbiz.io\/trust-registration\"><strong>procedure for registration<\/strong><\/a> of such trusts:<\/p>\n\n\n\n<ul><li><strong>Choose an appropriate\nname&nbsp;<\/strong><strong><\/strong><\/li><\/ul>\n\n\n\n<p>The name should\nnot come under the restricted list as per the provisions of the Emblem and Name\nAct, 1950.<\/p>\n\n\n\n<ul><li><strong>Formation of trust deed<\/strong><\/li><\/ul>\n\n\n\n<p>A trust deed is\nvery important for the registration of the trust; it is legal evidence of the\nexistence of the trust. It contains all the rules, regulations and bye-laws of\nthe trust. The trust deed should be prepared on stamp paper.&nbsp;<\/p>\n\n\n\n<p>The MOA should\nalso be formed with the trust deed; it has specific objectives of the trust\nalong with the details and signatures of the trustees\/members.&nbsp;<\/p>\n\n\n\n<ul><li><strong>Submission of trust deed with Registrar<\/strong><\/li><\/ul>\n\n\n\n<p>The certified\ntrust deed along with the photocopies attested by the Registrar. The settler\nand the two witnesses with their identity proof should be physically present at\nthe time of registration.&nbsp;<\/p>\n\n\n\n<ul><li><strong>Obtain trust registration number<\/strong><\/li><\/ul>\n\n\n\n<p>After submission\nof the trust deed, the Registrar keeps the photocopy and returns the original\nof it.&nbsp;<\/p>\n\n\n\n<p>Then after\ncompletion of all the formalities, a certificate of registration is issued\nwithin seven working days.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Documents required for registration<\/strong><\/h3>\n\n\n\n<ul><li>Trust deed<\/li><li>Self-attested copy of Identity proof of the settler&nbsp;<\/li><li>Self-attested copy of Identity proof of the trustee<\/li><li>Address Proof of registered office of the charitable trust<\/li><li>PAN Card<\/li><li>Non-objection certificate (NOC) by the owner of the land<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><strong>Conclusion<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p> The charitable trust a created for a charitable purpose, especially for public health, religious practices, education, poverty or gender equality. It is a form of public trust which is registered with the office of the charity commissioner. The registration of such trust is done by the Registrar after submitting the trust deed along with other documents and the required fee. A charitable trust is governed by the provisions of the Indian Trust Act, 1882; however, each state has its own law to govern the trust created in that state. The trust property is an essential part of the trust along with the author, trustee and beneficiary. The objective of the trust should be very clear. The charitable trust has permanent existence, and it enjoys various tax benefits. Such trusts also generate goodwill. <\/p>\n\n\n\n<p class=\"text-left\"><b>Read our Article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/advantage-of-trust-registration-in-india\/\">Know the Advantage of Trust Registration in India<\/a><\/mark><\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In a trust, the owner can transfer the property to a trustee for the benefit of the beneficiary or beneficiaries. Trusts are irrevocable and cannot be amended or terminated without an order of the court. Trusts are registered with limited members for some charitable purpose under state laws.&nbsp; Trusts can be Private, or Public Trust [&hellip;]<\/p>\n","protected":false},"author":36,"featured_media":41996,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[324],"tags":[2241],"acf":{"service_id":"10"},"authorName":"Shambhavi Suyesha","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/03\/IMG-20220324-WA0005.jpg","authorDescription":"Shambhavi holds a strong legal background, having completed her BA LLB and LLM. She is particularly interested in legal research and writing, and wishes to utilise her knowledge to create informative legal content. She is an analytical researcher and keeps herself updated about the current legal affairs. She also holds prior experience in publishing articles on assorted legal areas.","postViews":14603,"readingTime":3,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/41979"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/36"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=41979"}],"version-history":[{"count":15,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/41979\/revisions"}],"predecessor-version":[{"id":41997,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/41979\/revisions\/41997"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/41996"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=41979"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=41979"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=41979"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}