Pl advise how to set up a charitable trust. What is the paper work involved ? Is it as simple / straight forward as starting up a company / proprietorship firm ?
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1) you can contact a local lawyer for drafting trust deed for private charitable trust
2) trust deed should be registered
3) it should mention name of persons who would be the trustees
4) the object of trust should be mentioned . procedure for filling of vacancies and termination of office of trustees should be mentioned
5) a public charitable institution can be formed either as trust or society or as section 8 company
A Trust can either be a private trust or a public charitable trust. Private trusts are governed by the Indian Trusts Act (1882) and are used for private purposes, such as running a private estate or institution. Privates trusts are not given any tax benefits by the Government of India. If you want to do some charitable work for public –you can set up a public charitable trust.
The trusts are state subjects and are governed by respective state government rules.
For formation of trusts many formalities are to be complied with, hence you may take the help of a local advocate for the same by providing him the necessary details.
1. A public charitable or religious institution can be formed either as a Trust or as a Society. It generally takes the form of a trust when it is formed primarily by one or more persons. To form a Society at least seven persons are required. Institutions engaged in promotion of art, culture, commerce etc. are often registered as non-profit companies. You can form and register the trust as per the Indian Trusts Act by executing a trust deed.
2. Under the Income Tax Act, wholly charitable and religious trusts are exempt from tax. A notified approval from the DG Income Tax Exemptions may be obtained under Section 10 (23C), subject to the fulfilment of certain specified conditions.
