21 February 2012
Sir, i want to create a Trust which will accept donation from the doners for the purpose of providing medical facilities in rural area and the doner can claim deduction for tax in income tax. so please tell me whats the procedure for formation of trust and which document will be required for formation of trust
you need to apply to Commissioner of Income Tax falling under the jurisdiction of your trust under section 12A.
Section 12AA - on receipt of the application so filed by you a CIT shall call for the documents and information to satisfy himself with regard to trust.
Once he is satisfied with genuineness of trust objective and others he will pass an order in writing registering your trust and if not satisfied then pass an order for refusing to do so.
In order to avail the deduction of donation made by donor you have to take registration for deduction u/s 80G(5)...
Nowadays once you get such certificate u/s 80G(5) its validity will go on in perpetuity basis untill the CIT withdraw the benefit in writing.
21 February 2012
thanks expert for well explanation.
dear author,
CIT RIGHTS FOR ASK:
Objects of the trust
Movable property with estimated value of each class of such property
Details of immovable properties showing the village or town where situate, along with C. S., Municipal or Survey No., area, assessment or Judi and description of the tenure on which held (attach certified copies of the entries in the Record of Rights,
Estimated value of each immovable property
Sources of income of the trust,IF CIT thinks fits.
CAclubindia
