REGISTRATION OF CHARITABLE AND RELIGIOUS TRUST

Astha Trivedi

School of Law, Lovely Professional University

Phagwara, Punjab

Asthatrivedi0@gmail.com

ABSTRACT:

This research paper deals with the charitable and religious Trust. In this paper I am going to
discuss the meaning of charitable and religious Trust. After that I will discuss the difference
between Private Trust and Public Trust. Moreover I will discuss the registration process for
the registration of charitable and religious trust under Public Trust Act and income Tax also.
Doctrinal research method has been used to study the concept of registration of charitable and
religious trust. Deductive reasoning method is used to study the extant literature and frame
the arguments and analysis. Most of the information is, however, from the Internet.

Keywords – Charitable , religious, registration, trust, income tax.

1
INTRODUCTION

A public or charitable trust is a trust for the benefit of the public at large or a considerable
and indeterminate section of the public. According to J.G Riddall , the two matters which
preclude a trust from having charitable status are:
1. Profits- If a body is established with the object of making profits, then it cannot be
charitable.
2. politics - A trust cannot be Charitable it it's objects are wide enough to allow the trustees to
apply the trust property, in support of a particular political party; or in support of a particular
political cause or policy; or with the object of bringing influence to bear directly or indirectly
on parliament to change the general law of the land.1

Section 1 of the Indian trust Act expressly lays down that nothing contained in the Act
applied to public or private religious or Charitable endowments. But the principle underlying
the Act being based on general principles and rules of English law on the subject unless they
are inconsistent with rules and practice of the court.2

The Indian trusts Act has no application to public or private religious and charitable
endowments.3

Charitable purpose’ includes relief of the poor, education, medical relief, and also the
advancement of any object of general public-service corporation. However, if it involves
carrying on of any activity within the nature of trade, commerce or business or any activity of
rendering any service in relevance with trade, commerce or business for a cess or fee or the
other thought, regardless of the character of use or application or retention, of the financial
gain from the same activity, an equivalent won’t be considered as an advancement of any
object of general public-service corporation. However, if the entire receipts from such
activities don’t exceed Rs. 10,00,000/- ,4 such activities of the trust can still be considered as
activities for charitable purpose. Preservation of surroundings (including watersheds, forests
and wildlife) and preservation of monuments or places or objects of inventive or historic
1
Re Shaw, (1957) 1 All ER 745
2
Phulchand Lakshmichand Jain v. Hukumchand Gulabchand Jain, AIR 1960 Bom 438.
3
Prem Prakash Johar v. his highness Sri Maharaja Vibhuti Narain Singh Bahadur and Ors, 1989 , Selected civil
decisions, p.301
4
Income tax provisions related to charitable trust Act, available at: https://taxguru.in/income-tax/income-tax-
provisions-related-to-charitable-trust-in-brief.html/comment-page-2/ (Last seen on 28th September, 2021).

2
interest would be thought-about as “charitable purpose” aside from “advancement of any
object of general public utility”.
According to Section 2(15) of the Income Tax Act, 1961, Charitable purposes include "relief
of the poor, education, medical relief, and the advancement of any other object of general
public utility." Finance (No.2) Act, 2009 added the "preservation of environment (including
watersheds, forests, and wildlife) and preservation of monuments or places or objects of
artistic or historic interest" to the list of charitable purposes. Finance Act, 2008 limited the
definition of "charitable purpose," by stating that if the "advancement of any other object of
general public utility" involves undertaking any trade, commerce, or business activities, or
rendering any related service for a fee or any other condition (irrespective of use, application,
or retention of income arising from such activities), it will not be considered a "charitable
purpose." The Finance Act 2010, retrospectively effective from April 1, 2009, provided some
relief by exempting the aggregate value of receipts from such activities up to one million
rupees.5

RESEARCH METHODOLOGY:

Doctrinal research method has been used to study the concept of registration process of
charitable and religious Trust. The study is an exploratory analysis, primarily qualitative in
nature. An intensive study of the existing literature was conducted. A little bit of historical
literature was also studied to understand the origin and concept of trust. To collect the data,
document analysis method was used. Herein, all the existing documents pertaining to the
study are analysed in depth. Thereafter, deductive reasoning method was used to study the
extant literature and frame the arguments and analysis. Most of the information is, however,
from the Internet.

WHY DO WE FORM A TRUST

1. For discharge of the charitable and or religious sentiments of the author (person who
makes a settlement, especially of property in establishing a trust of the trust)
2. For claiming exemption from income tax u/s 10 and 11 as the case may be, in respect
of incomes applied to charitable or religious purposes.
3. For the proper management and preservation of a property.

5
Ibid.

3
FORMATION OF CHARITABLE TRUST

 A public Charitable or religious institutions can be formed either;

 As a Trust registered under Public Trust Act 

 As a society under societies registration Act 1860

 As a company registered u/s 8 of companies Act, 2013(earlier it was section 25 of the

companies Act 1956).

ESSENTIALS OF A VALID CHARITABLE OR RELIGIOUS TRUST

There are four Essential elements of a valid Charitable or religious Trust- 

 Charitable or religious Object

 Capacity to create the trust
 Certainty of object and dedication thereto
 Concurrence of law6

MEANING OF CHARITY

The term defines charity is not defined in the Indian Statute. Lord Macnaghten enumerate
the following objects as charitable in the well known case of Income tax commissioner v.
Pemsel.7

Charity in this legal sense comprises four principal divisions: 

1. Trusts for the relief of poverty
2. Trusts for the advancement of education
6
Charitable trusts, available at; http://www.duhaime.org/ LegalResources/elderlawwillstrustsestates/lawarticle-
340/charitable-trusts. Aspx (Last seen on 28th September,2021).
7
( 1891) A.C. 531, 583

4
3. Trusts for the advancement of religion
4. Trusts for the purposes beneficial to the community, not falling under any of the preceding
heads, e.g., mending of roads, supplying of water, repairing of bridges etc.

The trusts last referred to are not the less charitable in the eye of the law, because incidentally
they benefit the rich as well as the poor 8as indeed every charity that deserves the name must
do either directly or indirectly.

Section 2 of charitable endowments Act 1890, however, defines Charitable purpose as

including relief of the poor, education, medical relief and advancement of any other object of
general public utility but does not include a purpose which relates exclusively to religious
teaching or worship.
According to Section 9(1) of the Bombay Public Trusts Act, 1950, “charitable purpose
includes:

1) Relief of poverty or distress

2) Education

3) Medical relief

3A) provision for facilities for recreation or other leisure time occupation (including
assistance for such provision), if the facilities are provided in the interest of social welfare
and public benefit

4) The advancement of any other object of general public utility, but does not include a
purpose which relates exclusively to religious teaching or worship.”9

JUDICIAL TRENDS

Since there is no statutory definition of charity, courts used the Preamble to the Statute of
Charitable Uses 1601 or sometimes referred as the Statute of Elizabeth.1 Whereas lands,
chattels, cash are given by sundry well disposed persons, some for the relief of aged,
impotent and poor individuals, the upkeep of sick and maimed troopers and mariners,
8
Milford v. Reynolds(1842) 1 Ph. 185
9
Charitable trusts, available at; http://www.duhaime.org/ LegalResources/elderlawwillstrustsestates/lawarticle-
340/charitable-trusts. Aspx (Last seen on 28th September,2021).

5
faculties of learning, free faculties and students in universities, the repair of bridges, port,
haven, causeway, churches, ocean banks and highways, the education and preferment of
orphans; the relief, stock maintenance for homes.

Lord McNaughton summarized the scope of charity. “Charity in its legal sense comprises
four principal divisions, trusts for the relief of poverty, trust for the advancement of
education; trust for the advancement of religion; and trust for other purposes beneficial to the
community, not falling under any of the preceding heads.” 10Oppenheim v Tobacco Securities
Trust Co Ltd11, certain trust for the education of children of employees of former employees
of British American Tobacco Co Ltd or any of its subsidiary or allied companies.

Dingle v Turner12

Trust to apply income in paying pensions to poor employees of a company. HOL reaffirmed
the Court of Appeal’s decision that it was charitable. If the trust is one to relieve poverty
among named persons it is not charitable.

Re Scowcroft13

The gift of income to be applied for the furtherance of conservative principles and religious
and mental improvement. Held: Charitable Trust Re Koepller’s Will Trust ( 1986) Ch 423 A
gift to further the work of educational project was held charitable even though the testators
express aspiration were not regarded as charitable. The project involved conferences with
political flavour but it did not further the interest of a particular political party.

CIT Vs. Andhra Chamber of Commerce14

Definition of term “Charitable purpose” is inclusive and not exhaustive. The expression is not
restricted to the objects beneficial to whole mankind. An object which is beneficial to a
section of the public is also a charitable object.

CIT Vs. Bar Council Of Maharastra15

10
Charitable trusts, available at; http://www.duhaime.org/ LegalResources/elderlawwillstrustsestates/lawarticle-
340/charitable-trusts. Aspx (Last seen on 28th September,2021).
11
[1951] AC 297
12
(1972) AC 601
13
(1898) Ch 638
14
(1965) 55 ITR 722
15
[1981] 130 ITR 28

6
The expression “advancement of general public utility” includes any object beneficial to
public or a section of the public as distinguished from an individual or a group of individual.

PUBLIC CHARITABLE TRUST

Public charitable trusts, as distinguished from private trusts, are designed to benefit members
of an uncertain and fluctuating class. In determining whether a trust is public or private, the
key question is whether the class to be benefited constitutes a substantial segment of the
public. The beneficiary group must be substantially public and if the trust is formed to benefit
a select group, then it cannot be classified as ‘public charitable trust’. Similarly, in case of a
trust formed for educational purposes should also satisfy the ‘public’ element. While a
college or university will fall under the definition of public charitable trust, trusts formed for
education of own family will not be considered a public charitable trust. There is no central
law governing public charitable trusts, although most states have "Public Trusts Acts." In the
absence of a Trusts Act in any particular state or territory, the general principles of the Indian
Trusts Act 1882 are applied.16

Typically, a public charitable trust must register with the office of the Charity Commissioner
having jurisdiction over the trust (generally the Charity Commissioner of the state in which
the trustees register the trust) in order to be eligible to apply for tax-exemption.

FORMATION OF PUBLIC TRUST

Like the private trusts, public trusts may be created inter vivos or by Will. In the case of
Hanmantram Ramnath (Bom) it was held that “Although the Indian Trusts Act, 1882 does not
specifically apply to public charitable trusts, there are three certainties required to create a
charitable trust. They are:

 As declaration of trust which is binding on settlor,

 Setting apart definite property and the settlor depriving himself of the ownership
thereof, and
 A statement of the objects for which the property is thereafter to be held, i.e. the
beneficiaries.17
16
Formation of Public Trust, available at: https://caknowledge.com/formation-public-charitable-trust-state-
trusts-act/ ( Last seen on 28th September, 2021)
17
Ibid.

7
It is essential that the transferor of the property viz. the settlor or the author of the trust must
be competent to contract. Similarly, the trustees should also be persons who are competent to
contract. It is also very essential that the trustees should signify their assent for acting as
trustees to make the trust a valid one. In general, trusts may register for one or more of the
following purposes:

 Relief of Poverty or Distress;

 Education;

 Medical Relief;
 Provision for facilities for recreation or other leisure -time occupation (including
assistance for such provision), if the facilities are provided in the interest of social
welfare and public benefit; and

 The advancement of any other object of general public utility, excluding purposes
which relate exclusively to religious teaching or worship18

Public trusts can be formed by any person under general law. Under the Hindu Law, any
Hindu can create a Hindu endowment and under the Muslim law, any Muslim can create a
public wakf. Public Trusts are essentially of charitable or religious nature, and can be
constituted by any person.19

WHO CAN BE A TRUSTEE?

Every person capable of holding property can become a trustee. However, where the trust
involves the exercise of discretion, he can accept or act as a trustee only if he is competent to
contract. No one is bound to accept trusteeship. Any number of persons may be appointed as
trustees. However, no trust is defeated for want of a trustee.20

Where there is no trustee in existence, an official trustee may be appointed by the court and
the trust can be administered. An executor of a Will may become a trustee by his dealing with

18
Charitable trusts, available at; http://www.duhaime.org/ LegalResources/elderlawwillstrustsestates/lawarticle-
340/charitable-trusts. Aspx ( Last seen on 28th September,2021).
19
Formation of Public Trust, available at: https://caknowledge.com/formation-public-charitable-trust-state-
trusts-act/ ( Last seen on 28th September, 2021)
20
Formation of charitable and religious trust, available at: http://incometaxmanagement.com/Pages/TRUST/4-
Formation-Of-A-Charitable-Religious-Trust.html (Last seen on 28th September, 2021).

8
the assets under the provisions of the Will. When an executor is functus officio to any of the
assets and yet retains them, he becomes a trustee in respect of those assets.

WHO CAN BE A BENEFICIARY?

In a private trust the beneficiaries are one or more ascertainable individuals. In a public trust
the beneficiaries are a body of uncertain or fluctuating individuals and may consist of a class
of the public or the whole public. Generally, a private trust is not a permanent one. But a
public trust is of a permanent nature. If properties are dedicated to temples and mosques or
gifts are made to religious or charitable institutions they create a trust.

REGISTRATION OF PUBLIC CHARITABLE TRUST:

The application for registration should be made to the official having jurisdiction over the
region in which the trust is sought to be registered. In states or Union Territories where there
is no Trusts Act, the general principles of the Indian Trusts Act 1882 will apply.

Public Trusts can submit an application for registration to the deputy / assistant Charity
Commissioner having jurisdiction over the region / sub region in which the trust is sought to
be registered. The office of the charity commissioner is situated in Mumbai (Bombay) for
Maharashtra and Mumbai, and in a Lower Registry Court in other major cities (including
Delhi, Chennai and Calcutta).21

While states like Maharashtra and Gujarat have a Charity Commissioner much of North and
North-East India does not have a Charity Commissioner. The Bombay Public Trusts Act,
1950 is applicable only in the states of Maharashtra and Gujarat. Rajasthan, Gujarat and
Tamil Nadu have their own Trust Acts. Most charities have to be registered as a Charitable
Trust. Only the state of Maharashtra has a Charity Commissioner and a Charity
Administration Fund helps support the office of the charity commissioner in the state. 22

A Public Charitable Trust can be legally created by executing a 'Trust Deed' on stamp paper
and obtaining the signatures of all the 'Settlors/Founders' and the 'Trustees'. This legal

21
Trust registration requirements, available at: http://trust-registration.in/requirements.php (Last seen on 28th
September, 2021).
22
Handbook laws on the formation of charitable organisation,available
at:https://taxguru.in/wp-content/uploads/2012/09/hb-charitable_org.pd Last seen on 28th September, 2021).

9
document is then registered with the Sub-Registrar's Office. After this, the trust may proceed
to obtain tax exemptions with the Income Tax authorities.

PROCEDURE FOR REGISTRATION OF PUBLIC CHARITABLE

TRUST

Section 18 of the Bombay Public Trust Act, 1950. The application for registration of a public
charitable trust should be submitted (under Section 18 of the Bombay Public Trusts Act,
1950) to the deputy/assistant Charity Commissioner having jurisdiction over the region / sub
region within the limits of which the trustee has an office for the administration of the trust or
the trust property or substantial portion of the trust property is situated, as the case may be.

Such application shall be in writing, shall be in such form and accompanied by such fee as
may be prescribed. The application should be made in the prescribed form i.e. Schedule II of
Bombay Public Trusts Rules, 1951, which is available from the office of the Charity
Commissioner.23

After providing details (in the form) regarding designation by which the public trust shall be
known, names of trustees, mode of succession, etc., the applicant has to affix a court fee
stamp of Rs. 2/- to the form and pay in cash, registration fee that may range from Rs. 3/- to
Rs. 25/-, depending on the value of the trust property. The application form should be
submitted, together with a copy of the trust deed (the original may be produced, later, for
verification) which is the main instrument of the trust.

According to article 61 of Schedule I of the Bombay Stamp Act, 1958, "where there is
disposition of property" and "where the Trust is made for a religious or charitable purpose",
the stamp duty is "the same duty as a Bond (article 13) for a sum equal to the amount settled
or market value of the property settled". On reading the aforesaid article 61, together with
article 13, of the Bombay Stamp Act, we understand that for "every rupees five hundred or
part there of the stamp duty (w.e.f. 1-5-1993) is "rupees twenty". If one decides to start a trust
with a token amount of Rs. 1,000/-, the trust deed should be executed on a non-judicial stamp
paper of Rs. 40/-. It is advisable to use both sides of the paper, and the pages, other than the
stamp paper, are of a variety known as "ledger paper". Both the settler/s and trustee/s in the

23
Handbook laws on the formation of charitable organisation,available
at:https://taxguru.in/wp-content/uploads/2012/09/hb-charitable_org.pd Last seen on 28th September, 2021).

10
presence of a witness should sign the trust deed. The witness may be a friend or relative.
Some even prefer to sign before a notary.24

Every application made shall be signed and verified in the prescribed manner by the trustee
or his agent specially authorized by him in this behalf. It shall be accompanied by a copy of
an instrument of trust, if such instrument had been executed and is in existence.

The application in addition to a copy of the instrument of trust, shall be accompanied by a

copy of the scheme, if any, in operation in regard to the public trust. Two other documents
which should be submitted at the time of making an application for registration is

 Affidavit which must be sworn (by the trustees making the application) before a
notary and executed on non-judicial stamp paper of Rs 10/- .
 Consent letter, which may be prepared on an ordinary sheet of paper and signed by
the trustee/s other than the trustee making the application.

In the absence of a consent letter from the remaining trustees, the deputy/assistant charity
commissioner can insist on the presence of all the remaining trustees for the hearing.

It shall also be the duty of the trustee of the public trust to send a memorandum in the
prescribed form (Schedule IIA of Bombay Public Trusts Rules, 1951) containing the
particulars, including the name and description of the public trust, relating to the immovable
property of such public trust, to the Sub-Registrar of the sub-district appointed under the
Indian Registration Act, 1908, in which such immovable property is situate for the purpose of
filing in Book No. 1 under section 89 of that Act.

Processing the application usually takes about six to eight weeks. A notice informing the
applicant about the day and time fixed for a formal hearing is dispatched usually 10 to 15
days in advance. The applicant generally has to appear in person or depute his / her lawyer.
The original trust deed should be produced for verification at the time of the hearing.

The deputy / assistant charity commissioner before whom the enquiry is held will ascertain:

 Whether a trust exists and whether such trust is a public trust;

 Whether any property is the property of such trust;

24
Ibid.

11
  Whether the whole or any substantial portion of the subject matter of the trust is
situated within his jurisdiction;
 The names and addresses of the trustees and managers of such trust;
 The mode of succession to the office of the trustee of such trust;
 The amount of gross average annual income and expenditure of such trust;
 Any other particulars as may be prescribed under sub-section (5) of section 18.25

After making inquiries on the aforesaid issues, the deputy/assistant charity commissioner
makes entries in the Register and issues a certificate of registration which bears the official
seal and registration number of the trust.

After making inquiries on the aforesaid issues, the deputy/assistant charity commissioner
makes entries in the Register and issues a certificate of registration which bears the official
seal and registration number of the trust.

If the certificate of registration is lost or damaged over the years, a duplicate certificate can
be obtained from the department, on application and payment of a nominal fee.26

REGISTRATION OF CHARITABLE TRUSTS AND INSTITUTIONS

UNDER INCOME TAX

One of the key preconditions for charitable trusts and institutions seeking to claim exemption
under Sections 11 and 12 of the Income Tax Act is registration under the Act. Section 12A
enacts that the provisions of Section 11 and Section 12 which provide for exemption of
income to such trusts and institutions, will not be applicable unless such trust or institution
has made an application in the prescribed form for registration to the Commissioner or
Director, and it has been registered by the Commissioner or Director.

Under the amended provisions of this Section which have come into effect from 01.06.2007,
the earlier requirement of filing such an application within one year of creation of the trust (or
establishment of the institution) has been removed. Similarly, the power of the Commissioner
or Director to condone the delay in filing such application and to grant the benefit of
exemption retrospectively from the date of creation of trust or establishment of the institution
25
Handbook laws on the formation of charitable organisation,available
at:https://taxguru.in/wp-content/uploads/2012/09/hb-charitable_org.pd Last seen on 28th September, 2021).
26
Formation of Public Trust, available at: https://caknowledge.com/formation-public-charitable-trust-state-
trusts-act/ ( Last seen on 28th September, 2021)

12
has also been done away with. Under the amended provisions, where an application is filed
on or after the 1st day of June, 2007, exemption under Sections 11 and 12 shall be available
only on a prospective basis from the assessment year which immediately follows the financial
year in which the application is made.27

PRESCRIBED DOCUMENTS

So far as the prescribed documents are concerned there is no such list in Income Tax Act or
in Income Tax rules [Except providing for Indenture of Trust & details of Trustees]. CBDT is
purporting to make a standard Code of Procedure in this regard. We can expect it to come in
very short time. However, from the practical experience we can list out following certain
documents:

 Duly filed Form No.10A

 Copy of Registration certificate under Public Trusts Act
 Certified Copy of Trust Deed [In English, if not in English]
 Certified Copy of Object Clause of trust Deed
 List of Names & Addresses of all the trustees
 Copies of Pan Card of all the Trustees
 Audit Reports [Maximum to the Last three years] viii. Undertaking under section
11(5) and 13(1)( c)
 Affidavit of the Managing Trustee for Utilization of Income for Objects Only All this
is the prima facie circumstantial evidences to satisfy the C.I.T that the trust is genuine.
After providing necessary documents Commissioner may pass an order either
granting or rejecting the registration. However any order giving rejection to the
registration can’t be passed without giving opportunity of being heard. Opportunity of
being heard is given only by mean on written showcause notice to that regard.

However, the Communication of Acceptance or rejection of any application shall be made

within the six months from the end of the month in which the application was received. If no
communication is received within 6 months then trust will be deemed to be registered under
section 12AA.28

27
Handbook laws on the formation of charitable organisation,available
at:https://taxguru.in/wp-content/uploads/2012/09/hb-charitable_org.pd Last seen on 28th September, 2021).
28
Deemed registration of charitable trust under section 12A, available at: https://taxguru.in/income-tax/deemed-
registration-charitable-trust-under-section-12a.html (Last seen on 28th September, 2021).

13
CANCELLATION OF REGISTRATION UNDER INCOME TAX

Registration under section 12AA is lifetime subject to the satisfaction of conditions

mentioned above. If any of the conditions attached to it is violated then such registration may
be cancelled. Section 12AA (3) empowers such post cancellation. However, post cancellation
contains repercussion effects so its thorough reading and harmonious interpretation is
important.

Section 12AA (3) reads as follows: “Where a trust or an institution has been granted
registration under this section and subsequently the commissioner is satisfied that the
activities of trust or institution are not genuine or are not being carried out in accordance with
the objects of trust or institution , then he shall pass an order in writing cancelling the
registration of such trust or institution” Now, the most amicable reading of section 12AA(3)
is that the cancellation can only be done if trust is not carrying out the activities as per the
objects of the trust deed. 16 It simply implies that if there is any activity which is business
activity in nature and which is incidental to attainment of the objects of the trust, then merely
on the fact that the trust carries out activity in nature of business or trade, registration can’t be
cancelled. In the similar line, if there is any amendment in the Definition of Charitable object
and part of the activities of trust falls under trade or business nature, then also registration
can’t be cancelled.

DIFFERENCE BETWEEN CHARITABLE TRUST AND PRIVATE

TRUST:

A charitable trust is differently treated from an ordinary trust and in most cases favoured in
the following respects

CHARITABLE TRUST PRIVATE TRUST

A charitable trust does not fail for A private trust would, however, fail if the
uncertainty of objects if there is a clear objects of the trust are indefinite.
intention to devote the property to charity.

14
a gift to charity cannot fall for
indefiniteness.

The rule of law against perpetuties does A private trust is void if it offends the rule of
not apply to charitable trusts perpetuity or accumulation. 

Defects in conveyancing are supplied in An imperfect conveyance which would fail

case of Charitable trusts, but not in private in the case of private trusts is perfected in
trusts. case of charity

There will be no resulting trust  in the case In private trust if the trust fails either wholly
of a charitable trust because the doctrine of or in part or does not exhaust the whole
cypress would apply property there is a trust resulting in favour of
the settlor.

A charitable trust can be enforced at the A private trust can be enforce at the instance
instance of the advocate general or two or of the beneficiary or beneficiaries under the
more persons having an interest in the trust trust.
with the leave of the court. The sovereign
as parens patriae is interested in the
execution of charitable trusts.
The beneficiaries under a charitable trust The beneficiary under a private trust is an
are the public at large or a fluctuating individual or a certain limited number of
portion of the public, individuals.

In the administration of a charitable trust In the case of private trust unanimity of

the trustees can exercise their power by a decision is necessary, otherwise the power
majority of discretion lapses.

The rule that a trust must be for a lawful No such question arises in the case of a

15
 purpose in effect applies more stringently private trust.
to charitable trust. Thus gifts for
superstitious purposes are held void.

CONCLUSION :

Charitable and religious trust can be registered under public trust Act and Income tax Act
under Section 12A within six months. These are the documents which are used in the
registration of charitable and religious trust under Income Tax Act Duly filed Form
No.10A,Copy of Registration certificate under Public Trusts Act ,Certified Copy of Trust
Deed [In English, if not in English] ,certified Copy of Object Clause of trust deed, list of
names & addresses of all the trustees ,copies of pan card of all the trustees , audit reports
[maximum to the last three years], undertaking under section 11(5) and 13(1)( c), affidavit of
the managing trustee for utilization of income for objects.

Registration under section 12AA of Income Tax Act is lifetime subject to the satisfaction
of conditions mentioned above. If any of the conditions attached  thereto is violated then
such registration could also be cancelled. Section 12AA(3) empowers such post
cancellation. However, post cancellation contains repercussion effects so its thorough
reading and harmonious interpretation is important .

16