Trust is created via trust declared by the settlor, in the process of declaration of trust settlor is required to execute trust deed, so he can write the terms of creation of trust and anyone in the future can act on the basis of trust deed executed by the settlor, Trust deed should be drafted very carefully so as the trust declared by the settlor can achieve its objectives.

It is extremely difficult to amend a trust deed since a trust by its inherent nature is irrevocable. Therefore, it is important to provide the amendment clauses in the trust deed itself. In the trust deed where there is no mention about amendment, the amendment has to be done with the permission of a civil court.

For registration of ‘Trust Deed’ the Settlor, Trustee and at least one witness must be physically present at the Registrar’s Office. Trust Deed is the main instrument of any public charitable trust, wherein the aims and objects and mode of management (of the trust) should be enshrined.

A trust registered in India shall submit Copy of trust deed or copy of certificate of registration number issued by Charity Commissioner along with the PAN application. Copy of trust deed or copy of certificate of registration number issued by Charity Commissioner.

The basic requirement for running an NGO is to have a bank account under its name. In order to open an account, it is mandatory to be registered as a Trust, Society or Section 8 Company. The registration of an NGO is necessary to seek tax exemption from the Income Tax Authority.

Under the Provisions of Sec 12A/12AA of Income Tax Act, Charitable & Religious Trusts and Institutions are required to obtain registration under section 12A/12AA of the Income Tax Act, 1961 (hereinafter called ‘Act’), In order to claim the benefit u/s 11 of the Income tax Act that the income of the said organization be excluded from total income as defined u/s 2(45) of the Income Tax Act. 

80G is a certificate that exempts you part or fully from paying taxes, if you have made donations to charitable trusts or section 8 companies or organizations that are registered to offer you exemptions from taxes.

Charitable Trusts, Societies, Section 8 Company that receive foreign contribution or donations from foreign sources are required to obtain registration under Section 6(1) of Foreign Contribution Regulation Act, 2010. Such a registration under the Foreign Contribution Regulation Act, 2010 is called a FCRA registration.

A trust is traditionally used for minimizing estate taxes and can offer other benefits as part of a well-crafted estate plan. A trust is a fiduciary arrangement that allows a third party, or trustee, to hold assets on behalf of a beneficiary or beneficiaries.

All organisations or trust are required to file the return in ITR-7 by 30th October (as amended by Finance Act 2020, earlier it was 30th September) of the assessment year as where the income of a charitable trust, before claiming exemption under section 11 to 12 exceeds the maximum amount chargeable to tax.