Process and Benefits of Charitable Trust Registration Online Establishing a charitable trust is a noble endeavour aimed at making a positive impact on society by addressing various social, cultural, educational, or humanitarian issues. If you’re considering starting a charitable trust, you may have questions about the registration process, costs involved, and the benefits it offers. In this blog, we’ll explore how to register a charitable trust online, the associated costs, required documents, types of trust registration, and the numerous benefits of setting up a charitable trust in India.
What is Trust?
Indian Trust Act, 1882.owner assign the rights of property to a Trustee to Beneficiary ie. Benefits of Charitable Trust Registration Online The Third party can take benefit out of it. carried out by an instrument called Trust Deed. Trust deed mentioned the reason for formation of trust in details of author, trustee and the beneficiary. Registered with sub Registrar of concerned jurisdiction minimum 2 Trustee are Required.
Documents Required for Trust Registration: Benefits of Charitable Trust Registration Online
The documents required for trust registration typically include:
- 1.Trust Deed
- a).Major objects
- b) Trust address
- c) designation of The trustees
- 2.Identity proofs of trustees
- 3.Address proof of registered office
- 4.Passport-size photographs of trustees
- 5.PAN card of the trust ( apply for pan the open Bank account)
- 6.Affidavit or declaration of the trustees
- 7. NOC for address With proof
- Optional Licence or permission- 12A and 80G Certification- Only for NGOs involved in social welfare – not liable to pay income tax and issue for 5 year FCRA – if they want to accept donations from foreign .
How to Register a Charitable Trust Online:
In recent years, the Indian government has introduced online platforms to streamline the process of registering charitable trusts, making it more accessible and convenient for aspiring founders.
Here’s a step-by-step guide on how to register a charitable trust online:
- Choose a Name: Select a unique and meaningful name for your charitable trust, ensuring it reflects the organisation’s mission and objectives.
- Prepare Trust Deed: Draft a trust deed outlining the objectives, rules, and regulations governing the trust’s operations. Ensure compliance with the relevant laws and regulations governing charitable trusts.
- Create an Account: Benefits of Charitable Trust Registration Online Visit the official website of the Charity Commissioner or the respective state’s online portal for trust registration. Create an account and log in to access the registration portal.
- Fill Application Form: Benefits of Charitable Trust Registration Online Complete the online application form for trust registration, providing accurate details about the trust, trustees, objectives, and activities.
- Upload Documents: Upload scanned copies of the required documents, including the trust deed, identity proofs of trustees, address proof of the registered office, and any other relevant certificates or affidavits.
- Pay Fees: Pay the prescribed registration fees online using secure payment gateways integrated into the registration portal.
- Submit Application: Review the information provided, verify the documents uploaded, and submit the application for trust registration online.
- Track Application Status: Monitor the progress of your application through the online portal and respond promptly to any requests or queries from the authorities.
- Obtain Registration Certificate: Benefits of Charitable Trust Registration Online Once the registration process is completed and approved, download the registration certificate or receive it via email for official documentation.
Cost of Trust Registration:
The cost of registering a charitable trust in India varies depending on factors such as the state of registration, the value of the trust’s assets, and professional fees for legal assistance, if required. Generally, the registration fees range from a few hundred to a few thousand rupees, making it an affordable option for most founders.
Types of Trust Registration:
There are two main types of trust registration in India:
- Public Trust: A public trust is established for charitable purposes and operates for the benefit of the public at large. It is governed by the relevant state laws and regulations on public trusts.
- Private Trust: A private trust is created for the benefit of specific individuals or families and is not open to the public. It is governed by the Indian Trusts Act, 1882, and may have different legal requirements than public trusts. Benefits of Charitable Trust Registration Online (For example Father create a trust for his son with relatives)
Benefits of Charitable Trust:
Setting up a charitable trust offers numerous benefits, including:
- Tax Exemptions: Charitable trusts enjoy tax exemptions on their income, donations received, and activities undertaken for charitable purposes under the Income Tax Act, 1961.
- Legal Recognition: Registered charitable trusts are recognized as legal entities with rights, Benefits of Charitable Trust Registration Online privileges, and obligations, enhancing their credibility and legitimacy in the eyes of donors, beneficiaries, and other stakeholders.
- Fundraising Opportunities: Charitable trusts can access various fundraising opportunities, including grants, donations, sponsorships, and crowdfunding, to finance their charitable activities and programs
- Social Impact: Benefits of Charitable Trust Registration Online Charitable trusts have the potential to make a significant and lasting impact on society by addressing pressing issues such as poverty alleviation, education, healthcare, environmental conservation, and empowerment of marginalized communities.
- Community Engagement: Charitable trusts facilitate community engagement and participation in addressing local challenges, fostering collaboration, solidarity, and collective action for social change.
- Legacy Building: Establishing a charitable trust allows individuals or families to leave a lasting legacy by supporting causes they are Benefits of Charitable Trust Registration Online passionate about and making a positive difference in the lives of others for generations to come.
Who Can create Trust:-
- HUF Company Minor Association of Person or Company etc.
- Everyone competent to contract
Annual Compliance:-
1.Financial
2.List of Donors
3.Audit From CA if you are getting tax exemption
4.Filing Income Tax Return
Conclusion:-
Benefits of Charitable Trust Registration Online In conclusion, registering a charitable trust online offers a straightforward and efficient way to formalise your commitment to philanthropy and social welfare. By navigating the registration process, fulfilling legal requirements, and leveraging the benefits of charitable trust status, you can create a vehicle for positive change and contribute meaningfully to building a more equitable and compassionate society.
SOURCES: https://thenationaltrust.gov.in/auth/guidelines.php
FOR MORE INFORMATION: https://taxgyany.com/