Family Trust & Section 8 Company Services
Protect Your Wealth. Plan Your Legacy.
Private family trusts are the most powerful tool for estate planning, asset protection, and succession in India. Section 8 companies offer a structured way to run social impact initiatives. We handle both — from formation to annual compliance.
Trust Formation & Deed Drafting
A well-drafted trust deed is the foundation of effective wealth management. We draft deeds tailored to your family structure and asset profile.
- Specific Trust (determinate beneficiaries) vs Discretionary Trust (trustees decide distribution)
- Revocable vs Irrevocable trust structure advisory — tax implications of each
- Beneficiary designation — spouse, children, grandchildren, minor’s guardian
- Settlor, trustee, and beneficiary roles — rights, duties, limitations
- Asset schedule — immovable property, shares, FDs, gold, business interests
- Succession clauses — what happens on death of settlor, trustee, or beneficiary
- Stamp duty computation (Maharashtra) and registration with Sub-Registrar
Tax Planning with Family Trust
Family trusts have specific tax rules under the Income Tax Act. Proper structuring can result in significant legitimate tax savings across generations.
How it works — Tax Framework:
- Determinate Trust (specific beneficiaries): Income taxed in hands of each beneficiary at THEIR individual slab rate — splits family income across multiple PANs
- Indeterminate Trust (discretionary): Income taxed at Maximum Marginal Rate (30% + cess) — use only when flexibility outweighs tax cost
- Revocable Trust: Income taxed in hands of settlor (as if trust doesn’t exist) — Section 61-63 anti-avoidance provisions
- Irrevocable Trust: Income taxed at trust level or beneficiary level depending on structure
Tax Planning Strategies:
- Income splitting: Transfer rental properties to trust → rental income distributed among beneficiaries in lower tax brackets
- Capital gains planning: Trust sells property → beneficiaries claim exemptions (54, 54F) individually
- Minor beneficiary rule: Income of minor beneficiary clubbed with parent (Sec 64) — plan around this
- Mutual fund & equity investments in trust name — LTCG exemption of Rs. 1.25L per trust PAN
- Insurance policies in trust: Proceeds to trust are tax-free u/s 10(10D) if properly structured
- Business succession: Transfer business/shares to trust → next generation receives income without ownership disputes
Important Cautions:
- Section 56(2)(x): Transfer of assets to trust above Rs. 50,000 may trigger deemed income — plan the transfer value
- Clubbing provisions (Section 64): Settlor’s income from revocable trust is taxed to settlor
- Stamp duty on property transfer to trust — varies by state (Maharashtra: 3-5% of market value)
No 80C/80D deductions available to trusts — only to individual beneficiaries
Annual Compliance — Family Trust
- ITR-7 filing with complete income computation and beneficiary distribution schedule
- TDS on payments: rent, interest, contractor, professional fees
- Quarterly TDS returns (Form 26Q) and Form 16A issuance
- Trust accounting: Income & Expenditure account, Balance Sheet, beneficiary ledgers
- Trustee meeting minutes and resolution documentation
- Trust PAN renewal, address change, trustee change filings
Estate Planning & Succession Advisory
- Will + Trust coordination: which assets go in trust vs will vs nomination
- Cross-generation wealth transfer with minimum tax leakage
- NRI beneficiary planning — FEMA compliance, repatriation of trust income
- Life insurance trust (ILIT) structuring for estate duty planning
- Business succession: founder to next generation via trust route
- Family constitution / charter drafting — governance rules for family wealth
Section 8 Company Services
A Section 8 Company (not-for-profit) is ideal for running structured social initiatives with corporate governance. Unlike a trust, it offers limited liability and a board-driven governance model.
Section 8 Company Formation
- Name reservation with MCA (must include ‘Foundation’, ‘Forum’, ‘Association’, etc.)
- License application under Section 8 of Companies Act, 2013
- MOA & AOA drafting with charitable/social objects
- SPICe+ incorporation — CIN, PAN, TAN allotted
- Bank account opening and initial compliance setup
Annual Compliance — Section 8 Company
- Statutory audit by CA (mandatory regardless of turnover)
- AOC-4: Financial statements filing with ROC (30 days after AGM)
- MGT-7: Annual return filing (60 days after AGM)
- DIR-3 KYC for all directors (30 Sep every year)
- ADT-1: Auditor appointment (15 days after AGM)
- ITR-6 filing with proper exemption claims
- 12A/80G registration (if receiving donations — same process as trusts)
- Board meeting minutes (minimum 4/year, gap max 120 days)
- CSR compliance advisory (if applicable)
Secured my business loan at 6.5% thanks to CA Vijay Singh — fast, smooth, and with better terms than my own bank offered.
When we started working with CA Vijay Singh, our financials were… let’s just say, not investor-ready. Over the next year, with his guidance, we filed everything on time, cleaned up our books, and set up proper compliance systems. When the time came to scale, we needed funds quickly. Because our records were now accurate and well-structured, Vijay ji was able to prepare a lender-friendly profile, highlight our strengths, and present it to the right banks/NBFCs. Result? Loan approved in under two weeks at competitive terms. I realised then that good fundraising starts long before you approach lenders — and having the right CA makes all the difference
When we started looking for investors, we had zero revenue on the books — just a strong idea, a capable team, and a big vision. I knew convincing investors would be tough without sales numbers. CA Vijay Singh & Team changed the game. They prepared a professional valuation report backed by a detailed market analysis that highlighted our industry potential, target audience, competitor positioning, and scalability. It wasn’t just numbers — it was a story investors could believe in. That report became the foundation of our pitch. Within weeks, we raised ₹2 crore in funding. Multiple investors said the depth of our market analysis was what gave them confidence to invest in a pre-revenue startup. If you’re raising funds before revenue, skip the generic pitch decks. Get a proper valuation report and market analysis from CA Vijay Singh — it can be the difference between a 'no' and a ₹2 crore 'yes.
Frequently Asked Questions
Yes. The settlor can transfer immovable property via a registered trust deed. Stamp duty applies (Maharashtra: typically 3-5% of market value). Capital gains may arise on transfer if the trust is irrevocable and for a consideration.
Yes. If beneficiaries are determinate (specific), income is taxed at each beneficiary's slab rate. If indeterminate (discretionary), income is taxed at the maximum marginal rate (30% + cess). Proper structuring can optimise the tax outcome significantly.
A trust is governed by the settlor's trust deed and the Indian Trusts Act — simpler to form, fewer compliance. A Section 8 company is governed by the Companies Act, 2013 — more compliance (ROC filings, board meetings) but offers limited liability and structured governance. Choose based on scale, governance needs, and donor expectations.
Yes. A Section 8 company can apply for both 12A (income exemption) and 80G (donor deduction) registration, just like a charitable trust. The process is the same — Form 10A/10AB filed with CIT(Exemption).
Depends on complexity: simple family trust with 2-3 beneficiaries and one property is straightforward. Trusts involving multiple asset classes, NRI beneficiaries, or business succession require detailed structuring. Book a consultation for a customised quote.