What do you understand by term “Trust”
A Trust is a type of NGO which can be created by minimum 2 members competent to enter into a contract(only a person who has attained the age of 18 years can become the member in a trust). The maximum number of members who can become the trustees in a trust is not specified in the Indian Trusts Act, 1882, hence any number of members can become trustees in a trust)
To creat a Trust the purpose must of creation must be lawful and a trust can be created for the objects such as charitable, Literary, scientific, religious purpose etc.
A Trust is a national level NGO and the area of operation of a trust is all India basis that means even after registering a single trust trustees can work in different parts of India. The Trust Act lies a strict condition of the trustees that the trustees of the trust shall not have any personal interest in the trust of its any property.A public charitable trust is usually created to provide the benefit to the general public and their must not be any personal interest of the trustees in the trust.
Indian Trusts Act, 1882 is the constitution under which a trust in India is Registered.
A trust can be created either on the basis of movable or immovable property which needs to be transfered to the trust beneficiary at the time of its registeration.
Procedure of Trust Registration in Delhi ; Trust Registration is Delhi has now been made simple, quick and easy. It required ony a period of 10 days to get a trust registration in Delhi by following below mentioned simple procedure;
1. Preparation of Trust Deed; First of all Trust deed must be drafted by the members desirous of becoming trustees in the given trust, and the trust deed must contain the required information about the trust along with the aims and objects of the proposed trust and the powers and duties of the trustees after the registration of the trust.
2. Appointment with DCO ; After the trust deed has been drafted along with the required information, the appointment must be taken in the concerned sub registrar office under the jurisdiction of which the registered office of the trust is to be situated on the suitable date.
3. Presentation before the officer ; The settler of the trust along with two witness must present before the concerned officer on the date of appointment along with the original and one set of xerox of all documents.
4. Registered Deed ; After the presentation before the DC officer, the officer will verify the documents and information provided for the purpose of trust registration and if he is satisfied with all the information and documents to be true and correct in all respect will issue the registered copy of the trust deed within 7 days from the date of presentation.
The trust after its registration becomes a separate legal entity and it now has all the powers and duties given to it by the trust deed and and it has the power to sue and to be sued on its own name as any other person or legal entity and is liable to comply with all the provisions and conditions applicable to a trust according to various Indian Statutes.
Once the trust is registered ; it can enjoy all the tax benefits provided by the various tax authorities and Income Tax Act, 1961 by getting it registered under Section 12AA and 80G of the Income Tax Act, 1961.