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TRUST formation and registration in Tamilnadu

Kannan M (Consultant) (85 Points)

30 April 2011

What is the procedure to form and register TRUST in Tamilnadu. Is Trust registration compulsory? What is the stamp duty amount for registration of Trust in Tamilnadu. What is the registration expenses? Whether Trust is to be registered in Society registration department or in Income tax department.

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Anumanchipalli Sathikonda (Tax Consultant) (1559 Points)
Replied 30 April 2011

Mr.Kannan

To take up charitable activities-

A trust can be formed by executing a Trust Deed by the Author/Creator of the Trust. Such Trust Deed should be registered under stamps and registration act with the authorities having jurisdiction over the trust. The stamp duty varies from state to state. Please get information from the local authorities regarding the stamp duty.

A society can also be registered as per the provisions of registration of societies act.

A company u/s 25 of companies act also can be formed.

After a trust/society/company comes into existence, such trust/society/company has to make an application u/s 12AA of Income-tax Act, 1961 for granting registration. The said application has to be submitted to the Director of Income-tax (Exemptions)/Commissioner of Income-tax (Exemptions) having jurisdiction. The application should be made in the prescribed form - Form No.10A. The application shouldbe in triplicate and should accompany with original/certified copy of trust deed/memorandum and articles of association. A Rs.2/- Court Fee Stamp should be affixed to the application form. The application should also be accompanied with a declaration by all the office bearers u/s 13(1)(c) and u/s 11(5) of the Income-tax Act.The office bearers should provided such other information as may be called for by the DIT/CIT in connection with granting of registration.

Best Wishes

Sathikonda

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RSK070 (CONSULTANT) (233 Points)
Replied 07 November 2011

Can u pls give me a format for declaration u/s 13(1)(c) and 11(5)

are there certificates mandatory even if we are applying only for reg u/s 12A - ie no 80G

Anumanchipalli Sathikonda (Tax Consultant) (1559 Points)
Replied 09 November 2011

Mr.RSK

There is no prescribed format of the declarations u/s 11(5) and u/s 13(1)(c). I am hereunder provding the formats for you.

DECLARATION U/S 11(5):

We, the trustees of ___________________________ (name of the trust)/Office bearers of __________________(name of the society or organisation) do hereby state that the funds of the trust/society are invested/deposted in the modes prescribed under section 11(5) of the Income-tax Act, 1961 and shall be continued to be invested/deposited in the same modes.

1.Trustee/Managing Trustee/President/Chairman

2.Turstee/Secretary

3.Trustee/Treasurer

DECLARATION U/S 13(1)(c):

We Trustees/Oficer bearers of _____________________(name of the trust/soiety/ornanisatin) do hereby state that no part of the income of the trust/society/organisation and none of the properties/ assets of the trust/society/organisation have been used or applied directly or indirectly for the benefit of the author/founder, any trustees/office bearers, who has made substantial contribution (exceeding fifty thousand rupees), any family member of the author/founder of the turst, any relative of the author/founder, trustee or the relative of the person who has made substnatial contribution fo the turst/society/organisation or any concern in which the author/founder, trustees, office bearers or the person who has made substantial contribution to the trust/society/organisatin or any relative of these persons has a substantial interet.

Best wishes

Sathikonda

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