Trust Registration Benefits
People set up charitabletrust with the combined purpose of getting involved into charitable activities, while accruing certain benefits for him, his heirs, and successors. Other pertinent reasons for which people set up charitable trust are to avail tax exemptions. Such charitable trusts are nonprofit organizations. However, to avail all these benefits, the charitable trust should have a legal entity. Such legal entities are conferred by means of Charitable Trust Registration, a process laid down under the Trust Act and the Federal laws.
Every charitable Trust is formed by registration of a trust deed. Therefore, Charitable Trust Registration invariably refers to a trust deed. There are more than seven hundred thousand different types of federally recognized nonprofit organizations in the India. However, the official seal have not been issued in favor of many of them.
The Federal and State Law Departments in the India provide a variety of resources to guide the charitable organizations and the common people. This process immensely helps those donors who desire to give their assets to the trusts, making them trustees in anticipation of getting tax benefits. This way, these donors not only get the tax benefits, but also hope to pass on to his legal heirs the assts accrued out of the donations. This being a good reason to invest, donors become more and more interested in investing their assets in a reputable trust organization.
Registration of charitable trusts require, that you should have some basic knowledge about how to set up a new trust as far as, its registration, the requirements for such registration, and the fees payable for the registration are concerned. Both, the Federal and the State authorities have set up their system of registration of charitable trusts. Specific laws like the Trust Act 1882 have been promulgated, and application forms have been prescribed to facilitate the process of registration.
Ordinarily, the authority dealing with the charitable trust registration, exercise all the common law and statutory rights, and execute the duties and powers in connection with the supervision, administration, and enforcement of charitable trusts. They are therefore invariably made a party to any type of legal dispute involving the trust. But one must remember that, except the churches in some case, all charitable nonprofit organizations are required to register with the concerned authorities.