Arvind Gupta (Article Assistance) (82 Points)
29 February 2012sir ,i want to know that how can a unregistered trust be establish (i want to open a unregistered trust),and i want to know what consequences would be faced ofter opening an unregistered trust ,further provide procedure to be opening a registered trust
John Cornelius
(Executive)
(21 Points)
Replied 13 April 2012
| Originally posted by : arvind gupta | ||
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sir ,i want to know that how can a unregistered trust be establish (i want to open a unregistered trust),and i want to know what consequences would be faced ofter opening an unregistered trust ,further provide procedure to be opening a registered trust |
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CA SURENDRA KUMAR RAKHECHA
(Practising CA at Surat)
(26263 Points)
Replied 02 August 2012
Unregistered trust can be created on stamp paper by writing the desire of the Trustee(s) i.e. the purpose for which the trust is being crated. These are generally created for family members' benefits.
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The income of these are either clubbed (if created for the benefits of the minors) or may be planned to be taxed after the attainment of majority of the minors (as per written clauses in the Trust Deed).
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Unregistered and Registered Trusts (both) are taxed as Association of Persons (AOP).
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Unregistered Trusts are denied TAX EXEMPTIONS.
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