11 November 2009
A trust has been created in relation to movable property (no immovable property is involved)by declaring on a non-judicial Rs. 100 stamp in presence of two witnesses and a notary (Notarial stamps also affixed). The author of the deed of Trust indicated with reasonable certainty by words - an intention on his part to create a trust, the purpose of the trust, the beneficiary, and trust property transferring to the trustees.
Important point - Trust has been created by transferring movable property.
11 November 2009
Yes, registration of trust is necessary. Otherwise lack of proper documentation will lead to BOI and the income will be taxable at maximum marginal rate.
12 November 2009
Experts say that registration is necessary, otherwise income is taxable at maximum marginal rate. Now questions arises - (i) Registration with whom? (ii) What is the time limit for registration from the date of formation of the Trust?
12 November 2009
(1) Registeration with charity commissioner (2)First trust deed need to draft then register with charity commissioner after registeration trust will come in formation.
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