Chartered Accountant · ICAI M.No. 153926 · FRN 136869W
Deed + registration
Draft the trust deed and register it with the sub-registrar/Charity Commissioner.
Then PAN, 12AB, 80G
Apply for the trust’s PAN and the tax registrations to unlock exemption and donor deductions.
From deed to a tax-effective trust
Forming the trust is the first step; making it tax-effective is the rest. Start with a well-drafted trust deed: clear charitable objects, the initial corpus, the trustees and their powers, the rules for succession and meetings, and a dissolution clause directing assets to a similar charitable purpose. Register the deed with the local sub-registrar (paying the applicable stamp duty), or, in states like Maharashtra and Gujarat, with the Charity Commissioner, which is where public charitable trusts are registered. Obtain the trust’s PAN. Then apply for the tax registrations that make it work: 12AB so the trust’s income is exempt when applied to its objects, and 80G so donors can claim a deduction — both through Form 10A/10AB, ideally together. Open a bank account in the trust’s name, and if you’ll receive foreign funds, plan for FCRA separately. After that, the trust runs on ongoing compliance: apply 85% of income to the objects, keep books, get audited in Form 10B/10BB where required, file ITR-7, and file the donation statement (Form 10BD) for 80G. Getting the deed’s objects broad enough to cover your planned work but clearly charitable is what avoids trouble at the 12AB stage. Confirm your state’s registration route and the current forms.