WHAT IS TRUST?
As per the Indian Trust Act 1882, a NGO Trust is a preparation where the
holder or owner transmits the belongings to somebody else or trustees for the
advantage of beneficiary or recipient. NGO Trust is registered and mention
under the state laws.
A NGO trust is basically stood for a
non-governmental organization and it is a lawfully recognized association which
is been undertaken or created by usual or ordinary individuals that activate
separately devoid of interfering of the government or anyone’s else.
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TYPES OF TRUST
Trusts can be classified into two categories:
1. PUBLIC TRUST: It is a trust whose beneficiaries
include the public at large. Public Trust is further subdivided into two parts:
· Public Charitable Trust;
· Public Religious Trust.
2. PRIVATE TRUST: A private Trust is the one whose
beneficiaries include families or individuals.
Private trust is further subdivided into two parts:
· Private Trusts whose beneficiaries and their
requisite shares both can be determined;
· The Private Trusts who’s both or either the
beneficiaries and their requisite shares cannot be determined.
12A AND 80G CERTIFICATES
Income Tax Department issues 12A certificate to the
trusts or NGOs. Any trust that has 12A certificate is not liable to pay Income
tax for the entire lifetime on its surplus income.
A Trust must acquire 80G certificate. This
certification gives the donor a permission to avail the benefit of deduction at
the time of making donation.
TRUST REGISTRATION PROCESS
1. SELECTION OF NAME OF TRUST:
First thing is to select a unique name of your trust,
the name should not violate or infringes someone else name or trademark.
2. DRAFTING OF TRUST DEED:
The trust deed needs to be drafted wherein the parties
to the deed shall be settler (author of the trust deed), the trustee and the
beneficiary.
3. FILING OF DOCUMENTS:
Filing documents before the registrar of the trust
having jurisdictions for the registration of Trust.
4. APPLY FOR PAN, TAN, GST REGISTRATION,
OPENING OF BANK ACCOUNT:
After registration of the trust, the next step is to
apply for allotment of PAN Number and TAN, GST Registration and thereafter
opening of a bank Account.
DOCUMENTS REQUIRED FOR REGISTRATION OF TRUST
· Photograph of all trustees and author
· Rent agreement or ownership documents and NOC signed
by the landowner
· ID proof of all trustees and author
· Trust deed
· PAN card of settler and each trustee