The origin of the trust can have the trace back to the ancient times when the humans had motivation towards charity and dedicate property for the charitable purposes and religious purposes found its manifestation in the forms of maths, dharamshalas, education and medical institutions, construction of the water tanks, implanting the trees etc. In modern times concept of the trusts has gained greater significance mainly due to various tax exemptions attached to this institutions. Besides there are certain exemptions are available to the donors in respect to certain donations to specified institutions. Thus Trust registration in Coimbatore is very important
Objectives of the trust
The following are the objectives for the trust registration in Coimbatore: The objective includes
- discharging the religious sentiments of the author in a way that ensures the public benefit.
- claiming the exemption from the income tax as the case may be in respect of the incomes applied to charitable or religious problems.
- For the welfare of the members of the family or other relatives who are dependent on the settlors.
- And for proper management and for the preservation of the property
- For regulating the affairs of the provident fund, superannuation fund and gratuity fund or any other fund constituted by a person for the welfare of its employees
How Trust distinguished from other legal obligations?
A trust has some features that are common to and resemble with certain other legal relations such as contract, agency, bailment, gift etc., it is therefore necessary to differentiate from other such relations.
Following documents required for trust registration in Coimbatore
- Trust deed
- Self-attested copy of immigrant proof of identity (Aadhar card, passport, voter ID, driving license or any such photo ID)
- Self-certified copy of each trustee’s identity proof (Aadhar card, passport, voter ID, driving license or any such photo ID)
- PAN card
- Proof of registered office fee address of the trust (electricity / water bill or certificate of registration)
- Objection letter not signed by the land owner
Trust and Contract
A contract is an agreement enforceable by the law, entailing an obligation or legal duty to do or abstain from doing something what one has promised to do abstain from doing. A trust resulting from the Act of the parties with respect to the beneficial interest in and the legal ownership of the trust property.
Trust is an obligation to use one’s property for the benefit of another. The beneficiary has more than one personal right against the trustee for the performance of the obligation of the trust. The legal ownership vests in person holding the property for his benefit (ie) for the trustee.
Trust and Agency
The relationship in a trust and an agency are identical in a substance, though in the form they are essentially different and have different legal implications. In agency, the property vests solely in the person on whose behalf the agent acts. In a trust, the ownership vests in the trustees though nominally (beneficial ownership vests in the beneficiary).
Trust and the bailment
A bailment is a contract where the bailer transfers the possession of the property to the bailee on condition that the bailee will restore the property to the bailer on the accomplishment of the purpose for which it is delivered. While, a trust is an obligation annexed to the ownership of the property. The fact that the bailee is in a fiduciary relationship as regards the bailer, does not make the bailee a trustee.
Trust and gift
A trust registered under trust registration in Coimbatore differs from a gift in the sense that a gift requires a delivery of the property and a complete transfer of the title. While in a trust, legal ownership vests with the trustee though the benefit of the trustee.
Benefits of Trust registration
There are numerous benefits in trust registration in Coimbatore. They are:
People have established charitable trust with the joint purpose of engaging in service-oriented activities, while reaping some benefits for it, for its heirs and successors. Other relevant reasons why people establish charitable trusts are the benefits of tax breaks.
Such charitable trusts are non-profit organizations. However, in order to receive all these benefits, the charitable trust must have a legal entity. Such legal entities have the grant by the Charitable Trust Registration, a procedure prescribed under the Trust Act and federal law.
Each charitable trust has the formation by the registration of a trust deed. Therefore, charitable trust registration always refers to a trust deed. There are more than seven hundred thousand different types of federally recognized non-profit organizations in India. However, no official seal has the issuance in favour of many of them.
Registration of a charitable trust is necessary, until acquiring some knowledge about how to establish a new trust; its registration, and the requirements for such registration and the fees payable for registration. Both, federal and state authorities have set up their system for registration of charitable trusts. Special laws such as the Trust Act 1882 have the promulgation. And application forms have the suggestion to simplify the registration process.
Also a registered trust deed becomes an official physical document that has the support and force of law.
- The registered deed affects the transmission of possession. The registration of a trust-deed in the absence of an opposing purpose is sufficient to give the trustee the title of trust-property. This is possible even if the trust deed is not given to him;
- Delivering the assets of the trust to the trustee under a registered deed, it is not generally open to challenge.
- In the case of charitable or religious faith, in relation to immovable property, exemption / e.g. E.g. In 11 of the Income Tax Act, the instrument of trust must be properly registered [d IT. Divekar Charity Trust’s CIT Vs. Trustees 7 1977] 110 ITR 227 (born.)]
- When the trust deed is reduced in writing with the Registrar, it provides exemption for donors. It is possible under Section 80G of the Income Tax Act. It noted that this is a necessary requirement for the purposes of Section 80G of the Income-tax Act, 1961.
- Under the provisions of Sections 11,12,1 2A and 13, with Sections 60 to 63 of the Income-tax Act, charitable income! Religious trusts registered under trust registration in Coimbatore are exempt from income tax subject to certain conditions. Such trusts are entitled to exemption under the Income-tax Act when they are created. This establishment is for the purpose as defined under section 2 (15) of the Income-tax Act, 1961.