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TRUST or FOUNDATION

THANVEER AHMED T (ACCOUNTANT) (25 Points)

27 March 2023

I want to do charitable activity to public as a whole in means of education help, money to needy people extra. In my late father's name.

Trust or Foundation I can create? Any one can explain me for this.

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CA Rakesh Ishi (Working at Private Company) (8200 Points)
Replied 27 March 2023

Yes, you can create a trust or foundation for carrying out charitable activities in the field of education and providing financial assistance to the needy in the memory of your late father. Here's a brief explanation of how you can create a trust or foundation:

Decide on the nature and scope of charitable activities you want to undertake: Before setting up a trust or foundation, you should decide on the nature and scope of charitable activities you want to undertake. Based on your objectives, you can focus on a specific area such as education, healthcare, or social welfare.
Choose a name for your trust or foundation: You should choose a name for your trust or foundation that reflects the purpose of your charitable activities.
Appoint trustees or directors: You will need to appoint trustees or directors who will manage the affairs of the trust or foundation. The trustees or directors should be individuals who share your vision and are committed to the cause.
Register your trust or foundation: You can register your trust or foundation under the Indian Trusts Act, 1882 or the Indian Societies Registration Act, 1860. The registration process may vary depending on the state in which you are registering.
Apply for tax exemptions: Once your trust or foundation is registered, you can apply for tax exemptions under Section 12A and Section 80G of the Income Tax Act, 1961. These exemptions will allow you to receive donations and provide tax benefits to donors.
Open a bank account: You should open a bank account in the name of your trust or foundation to manage donations and expenses.
Maintain proper records: You should maintain proper records of all donations received and expenses incurred by your trust or foundation. You may also be required to file annual returns and audited financial statements with the relevant authorities.

Setting up a trust or foundation for charitable activities requires careful planning and execution. It is recommended that you consult a qualified lawyer or a professional advisor who specializes in charitable activities to guide you through the process.