Trust Registration

A Trust is registered and governed by Indian Trust Act, 1882. Income Tax Act, 1961, defines a Trust as “An arrangement by which property is handed over to or vested in a person, to use and dispose off for the benefit of another person”. Creation of a Trust can be broadly classified into two methods namely

• Public Trust (Charitable Trust); and
• Private Trust formation.

Simply, a trust is legally created body, wherein property is transferred from its owner to the trust for lawful purpose. Usually we hear the word trust for religion or charitable purpose; however, there is no such restriction. There are even sports academies also can be registered as trusts.

In India, even many societies are registered as a public charitable trust. Often, you’ll even hear of the wealthy creating private trusts; this is done because of the tax-efficient nature of the trust (because dividend distribution tax or minimum alternate tax do not apply). It is the easiest way to transfer than making a will.

However, it does much involve more effort to register a trust than to write a will. Take the help of FinTax Consultants to form your Trust. Our FinTax Service is convenient and hasslefree.