2. Types of Registrations of A “Charitable & Religious Trust”

Registration of a Trust is mainly required from two angles:

• Registration under State Act

• Registration under Income Tax Act

Other types of registrations associated with a trust, required in certain situations, may be briefly stated as under:

(a) Registration under the Indian Registration Act;

(b) Registration under Public Trusts Act;

(c) Registration under Income Tax Act.

(c) Registration under the Foreign Contribution (Regulation) Act.

(A) Registration under the Indian Registration Act

As regards registration under the Indian Registration Act, it may be noted that it is the trust-deed and notthe trust which is required to be registered. Titus, for this purpose, a trust deed has to be framed incorporating the necessary provisions for management of the affairs and objects of the trust. This deed has to be registered with the Sub-Registrar of the Registration Department of the respective State Government. Besides, a trust created by a will may also be registered under the said Act by registering the will itself.

A trust-deed should be presented for registration within four months of its execution (Sec.23), in the office of the Sub-Registrar within whose sub- district the whole or some portion of the property is situate. (Sec. 28). If a document cannot be prescribed for registration within the aforesaid period owing to urgent necessity or unavoidable accident, it may be presented for registration within a further period of four months along with a line which shall not exceed ten times the amount of registration fee (Sec. 25.). Registration fees, as prescribed by the stale Government, is payable on presentation of the document. (Sec.78).

A trust deed relating to immovable property must, for the purposes or registration, contain a description of such properly, sufficient to identify the same. (Sec$.2l & 22). If there arc any interlineations, blanks, erasures or alterations in a deed, the same must be duly attested by the person(s) executing the deed (Sec.20).

When die Registering Officer is satisfied that the provisions of the Act as applicable to the document presented for registration have been complied with, he shall endorse thereon a certificate containing die word '‘registered", together with the number and page of the book in which die document has been copied. Such certificate shall be signed, sealed and dated by the Registering Officer, and shall then be the conclusive evidence that the document has been duly registered. (Sec.60).

(B) Registration under Public Trust Act.

It may be noted dial a charitable or religious trust. whether public or private, is not required to obtain registration under the Indian Registration Act. in certain states like Maharashtra and Gujarat there is a Public Trusts Act, which obliges such institutions, trusts to get registered as such under die said Act.

For example, according to the Bombay Public Trusts Act, 1950, all charitable and religious institutions arc to be registered as Public Trusts and will come under the supervision of the Charity Commissioner of the State.

For details, the relevant state law on trusts, if any, should be consulted.

(C) Registration under Income Tax Act.

Charitable or religious trusts anti societies, claiming exemption under Section 11 and 12 of the Income-tax Act arc required to obtain registration under the Act. Private! family trusts arc neither allowed such exemption nor. thus., required to seek registration under the Income-tax Act. However, private trusts partly for charitable or religious purposes, are also eligible and should, thus, obtain registration.

(D) Registration under Foreign Contribution (Regulation) Act. 1976

Any society, trust or charitable company carrying on educational, charitable, religious, economic, cultural or social welfare activities and desirous of receiving any foreign contribution from a foreign source, is required to obtain registration under section 6(1) of the Act. Any such association which is not registered or which has been denied registration, can receive foreign contribution only alter obtaining prior permission from the Central Government under section 6(1 A) of the Act.

3. Procedure for Registration of Trust or Institution (12AB) (12A,12AA)

1. Trust u/s 10(23C) - Exempted Trusts

Click here for More Details - Educational / Medical Institution

2. Other Charitable and Religious Trust

It is mandatory for a trust to get the registration under section 12AB of the Income-tax Act, 1961 so as to claim exemption under Section 11.

Form to be used to apply for registration?

A trust is required to apply for registration in Form No. 10A

Documents to be furnished along with application form?

The documents which are required to be furnished along with application Form No. 10A are as follows:

(a) where the trust is created, or the institution is established, under an instrument, self-certified copy of the instrument creating the trust or establishing the institution;

(b) where the trust is created, or the institution is established, otherwise than under an instrument, self-certified copy of the document evidencing the creation of the trust, or establishment of the institution;

(c) self-certified copy of registration with Registrar of Companies or Registrar of Firms and Societies or Registrar of Public Trusts, as the case may be;

(d) self-certified copy of the documents evidencing adoption or modification of the objects, if any;

(e) where the trust or institution has been in existence during any year or years prior to the financial year in which the application for registration is made, self certified copies of the annual accounts of the trust or institution relating to such prior year or years (not being more than three years immediately preceding the year in which the said application is made) for which such accounts have been made up; note on the activities of the trust or institution;

(f) self-certified copy of existing order granting registration under section 12A or section 12AB, as the case may be; and

(g) self-certified copy of order of rejection of application for grant of registration under section 12A or section 12AB, as the case may be, if any.