Trust Registration | Requirements, Eligibility & Legal Framework

A trust is a legal entity created to manage property or funds for charitable or religious purposes. Trust registration provides legal recognition, tax benefits, and operational transparency while ensuring compliance with Indian Trusts Act and Rajasthan Public Trusts Act.

Types of Trusts in India

Public Trusts

Established for charitable or religious purposes benefiting the general public

Private Trusts

Created for specific individuals or family members

Religious Trusts

Formed for promoting religious activities and institutions

Charitable Trusts

Focused on social causes like education and healthcare

DocumentsRequiredfor Trust Registration

Trust Deed

Stamped and notarized document establishing the trust

Identity Proof

Aadhar, PAN, Passport, or other government-issued ID

Address Proof

Utility bills, rent agreement, or similar documents

Registered Office Proof

Electricity bill, NOC, or rent agreement

Beneficiary Details

Information about trust beneficiaries and objectives

Trustee Photographs

Passport-size photographs of all trustees

Trustee Declarations

Trustee affidavits and declaration documents

Applicable Laws for Trust Registration

Trusts in India are governed by specific legal frameworks that vary based on the trust type and location. In Rajasthan, both national and state-specific laws apply to trust registration and operation.

Indian Trusts Act, 1882

Primary legislation applicable to private trusts across India.

Rajasthan Public Trusts Act

Governs public charitable and religious trusts specifically in Rajasthan.

Income Tax Act, 1961

Provides tax exemptions under Sections 12A & 80G for registered trusts.

FCRA, 2010

Regulates the receipt and utilization of foreign contributions by trusts.

Registration Process

Involves filing trust deed, submitting required documents to relevant authorities.

Ongoing Compliance

Annual filing requirements, maintaining proper records, and audit obligations.

Consequences of Not Registering a Trust

Operating an unregistered trust can lead to significant legal, financial, and operational challenges that may severely impact the trust's ability to function effectively.

No Legal Recognition

Unregistered trusts lack legal identity and cannot file cases in court.

No Tax Benefits

Ineligibility for tax exemptions under Sections 12A & 80G of Income Tax Act.

Restricted Fundraising

Cannot receive government grants or foreign contributions legally.

Operational Challenges

Limited access to banking services and inability to open accounts in trust's name.

Asset Ownership Issues

Unclear ownership of assets can lead to disputes among trustees and beneficiaries.

Credibility Issues

Lack of official status reduces trust from donors, partners, and beneficiaries.