Unregistered trust

Civil law 5450 views 2 replies

Arvind Gupta

Article Assistance

84 Points Joined July 2010

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

Replies (2)

John Cornelius

Executive

21 Points Joined April 2012

Originally posted by : arvind gupta
	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

CA SURENDRA KUMAR RAKHECHA

Practising CA at Surat

26263 Points Joined November 2009

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.

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).

Unregistered and Registered Trusts (both) are taxed as Association of Persons (AOP).

Unregistered Trusts are denied TAX EXEMPTIONS.