Charitable Trust Registration
Setting up a public charitable trust for objects such as education, medical relief or poverty alleviation, with a deed and registration sequence that supports 12AB and 80G tax registration afterwards.
A charitable trust is a public trust created for a defined charitable purpose recognised under the Income Tax Act, such as relief of the poor, education, medical relief, preservation of the environment, or advancement of any other object of general public utility. It must be registered with the jurisdictional sub-registrar, and separately obtain registration under Section 12AB of the Income Tax Act to claim exemption on its income, and under Section 80G if it wants donors to be able to claim a tax deduction for their contributions.
What our charitable trust registration service covers
A deed and structure built to pass Income Tax Department scrutiny.
- Drafting the trust deed with objects that clearly fall within the definition of charitable purpose under the Income Tax Act
- Appointing trustees and defining their powers, including restrictions on private benefit to trustees or their relatives
- Registering the trust deed with the sub-registrar and obtaining a certified copy
- Applying for the trust's PAN and opening a dedicated bank account
- Filing the application for registration under Section 12AB for income tax exemption
- Filing the application under Section 80G so donor contributions become tax-deductible
What the Income Tax Department checks before granting exemption
The elements that decide whether 12AB and 80G are approved smoothly.
Genuine Charitable Objects
Objects must fall within the statutory definition of charitable purpose and cannot be drafted so broadly that they effectively permit private commercial benefit.
No Private Benefit Clause
The deed must restrict trustees and their relatives from receiving undue personal benefit from the trust's income or property.
Record Keeping
Proper books of account, receipt records for donations, and utilisation records are essential, since these are examined during 12AB and 80G scrutiny.
FCRA Readiness
Trusts intending to receive foreign donations must separately plan for FCRA registration, which has its own eligibility conditions after a minimum period of existence.
Our process
From initial consultation to completion.
Deed Drafting
Drafting objects and trustee provisions that satisfy the definition of charitable purpose.
Sub-Registrar Registration
Registering the trust deed and obtaining the registered copy.
PAN & Bank Account
Applying for PAN and opening a bank account in the trust's name.
12AB & 80G Applications
Filing for income tax exemption and donor deduction registration with supporting documentation.
Why exemption applications get delayed or rejected
What sets our approach apart.
Objects drafted too broadly invite queries
Assessing officers frequently raise queries where objects are vague or could be read as covering commercial activity, slowing down the 12AB application.
Related-party transactions are heavily scrutinised
Any transaction between the trust and its trustees or their relatives is checked closely, and undocumented transactions are a common cause of rejection.
80G renewal is time-bound, not permanent
Since the current regime, both 12AB and 80G registrations are granted for a fixed period and must be renewed in time, and a lapse suspends the tax benefits until re-registration.
Charitable Trust Registration questions answered
What people ask before engaging us.
Setting up a charitable trust that qualifies for tax exemption?
We draft the deed and handle 12AB and 80G applications so the exemption isn't delayed by avoidable errors.
