Trust Registration in Delhi

A trust is an organization created for charitable or religious purposes. Trusts are governed by the Indian Trusts Act, 1882, and are registered with the Registrar of Trusts in the relevant state.

Any person, including a non-resident Indian (NRI) or a foreign national, can create a trust in India.

There are several benefits of registering a trust, including:

• Legitimacy: Registration provides legal recognition to the trust and makes it a separate legal entity.
• Tax exemption: Registered trusts are eligible for tax exemption under Section 12A and 80G of the Income Tax Act, 1961.
• Transparency: Registration requires the trust to maintain proper books of accounts, which promotes transparency and accountability.

You can check the status of your trust registration by contacting the Registrar of Trusts in the relevant state.

While it is not mandatory to register a trust in Delhi, registering a trust offers several advantages, such as legal recognition, tax benefits, and credibility. Registered trusts enjoy certain exemptions and benefits under the law, making it easier for them to raise funds, avail tax benefits, and gain the trust of donors and stakeholders.

A trust and a society are both legal entities that can be established for charitable or social welfare activities. The main difference lies in their legal structure and operational requirements. In a trust, the assets are held and managed by the trustees, while in a society, there is a governing body or managing committee comprising members who oversee the society’s affairs.

Registered trusts in Delhi are eligible for various tax benefits. They can avail of income tax exemptions under Section 11 and Section 12A of the Income Tax Act, 1961, for income earned from charitable activities. Additionally, donations made to registered trusts are eligible for tax deductions under Section 80G of the Income Tax Act, encouraging individuals and organizations to contribute to the trust’s cause.

Our Trust Registration fee in Delhi is Rs.5999/- + Govt fee 

The duration of the trust registration process can vary depending on various factors, including the completeness of the documentation, the workload of the Registrar of Trusts, and any additional scrutiny required. On average, the trust registration process in Delhi can take anywhere from a few weeks to a few months.

A revocable trust, a trust in which the terms can be changed at any time. An irrevocable trust describes a trust that cannot be modified after it is created without the beneficiaries’ consent or court approval, and possibly both.

Charitable trusts and private trusts are both legal entities established for specific purposes, but they differ in their objectives and how they operate:

1. Purpose
   • Charitable Trust: A charitable trust is set up primarily for charitable purposes, such as providing relief to the poor, advancing education, promoting religion, or other activities beneficial to the community.
   • Private Trust: A private trust, on the other hand, is created for the benefit of specific individuals or families, rather than for charitable purposes. It may involve managing and distributing assets for the benefit of family members, including future generations.
2. Beneficiaries:
   • Charitable Trust: The beneficiaries of a charitable trust are typically the general public or a specific charitable cause. They don’t have individual ownership rights over the assets held by the trust.
   • Private Trust: Private trusts have identifiable individual beneficiaries who have a vested interest in the trust’s assets. These beneficiaries may include family members, friends, or designated individuals.
3. Tax Treatment:
   • Charitable Trust: Charitable trusts often enjoy favorable tax treatment because they are established for charitable purposes. Donors may receive tax deductions for contributions made to charitable trusts, and the trust itself may be exempt from certain taxes.
   • Private Trust: Private trusts may not enjoy the same tax benefits as charitable trusts. The tax treatment of private trusts varies depending on the jurisdiction and the specific circumstances of the trust and its beneficiaries.
4. Public Benefit vs. Private Benefit:
   • Charitable Trust: The primary aim of a charitable trust is to benefit the public or a specific charitable cause. Any private benefit derived from a charitable trust must be incidental to its charitable purposes.
   • Private Trust: Private trusts primarily benefit the individuals or families named as beneficiaries. The trust’s assets are managed and distributed according to the terms of the trust deed for the benefit of these private beneficiaries.