Registration Process for a Charitable & Religious Trust

To legally establish and operate a Charitable & Religious Trust in India, the following registrations are required:

1. Registration Under the Indian Trusts Act, 1882 (Optional but Recommended)

Purpose: Legal recognition under civil law.
Where to Register:

• Sub-Registrar’s Office(where the trust property is located).

Documents Required:

✔ Trust Deed (original + photocopy)

✔ Proof of Identity (PAN, Aadhaar of Settlor & Trustees)

✔ Address Proof of Trust (Electricity bill/Rental Agreement)

✔ Passport-size Photos of Settlor & Trustees

✔ Witnesses (2 independent persons with ID proof)

✔ Stamp Duty Payment (varies by state, typically 3-5% of corpus value)

Process:

1. Draft the Trust Deed(with objectives, trustee details, corpus, etc.).
2. Pay Stamp Duty(varies by state).
3. Visit Sub-Registrar Officewith settlor, trustees & witnesses.
4. Submit documents& sign before the Registrar.
5. Receive Registered Trust Deed(takes 7-15 days).

📌 Note:

• Not mandatorybut highly recommended for legal validity.
• Required for PAN, Bank Account, and Tax Exemptions.

2. PAN & Bank Account Registration

Purpose: Financial transactions in the trust’s name.

Documents Required:

✔ Registered Trust Deed

✔ Address Proof (Trust Deed/Utility Bill)

✔ Trustees’ ID Proof (PAN, Aadhaar)

✔ Resolution (for bank account operation)

📌 Process:

• Apply for PAN(Form 49A) → Required for IT returns.
• Open a Bank Accountin the trust’s name (no personal accounts).

3. Income Tax Registration (Mandatory for Tax Exemption)

To claim tax exemptions under Sections 11 & 12, register under:

(A)  Section 12A/12AB Registration (Exemption Approval)

Where to Apply: Income Tax Portal (Form 10A).

Documents Required:

✔ Trust Deed (Certified Copy)

✔ PAN of Trust

✔ Audited Accounts (if already operational)

✔ Activity Report (if applicable)

✔ Trustees’ PAN & Aadhaar

Process:

1. File Form 10Aonline (via IT Portal).
2. Upload documents.
3. Approval Time: 3-6 months (provisional registration under 12AB is faster).

📌 Validity:

• 12A (Old): Permanent (if approved before 2021).
• 12AB (New): Provisional (3 years) → Renewal required.

(B)  Section 80G Registration (Tax Deduction for Donors)

Purpose: Donors get 50% tax deduction on contributions.
Where to Apply: IT Portal (Form 10G).

Documents Required:

✔ 12A/12AB Approval

✔ Audit Report (Form 10B)

✔ Donation Utilization Proof

📌 Approval Time: 6-12 months.

4. FCRA Registration (If Accepting Foreign Donations)

Purpose: Required for receiving foreign funds.
Where to Apply: Ministry of Home Affairs (Online).

Documents Required:

✔ Trust Deed

✔ Audited Accounts (3 Years)

✔ Activity Report

✔ Bank Certificate

📌 Approval Time: 8-12 months.

5. State-Specific Registrations (If Applicable)

• Societies Registration Act, 1860(if formed as a society).
• Public Trust Act(Maharashtra, Gujarat, Rajasthan require additional registration).
• CSR Registration(for corporate funding).

Summary: Registration Checklist

Key Compliance After Registration

✅ File ITR-7 annually (even if income exempt).

✅ Maintain Books of Accounts (audit required if income >₹5 lakh).

✅ Invest Accumulated Funds as per Section 11(5).

✅ No Private Benefits to trustees (Section 13 violation leads to exemption cancellation).