Trust Registration in West Bengal: An Overview

A trust is a legal entity established to manage and distribute assets for a specific purpose. In West Bengal, trusts are often preferred for setting up Non-Governmental Organizations (NGOs) focused on areas like science, arts, or literature.

Types of Trusts in West Bengal

• Private Trusts: Governed by the Indian Trusts Act, 1882. Do not enjoy government benefits or tax advantages.
• Public Trusts: May be governed by the Bombay Public Trusts Act, 1950 (in certain cases). Eligible for tax benefits under Sections 12A and 80G of the Income Tax Act.

Benefits of Trust Registration in West Bengal

• Exemption from Stamp Duty: Significant cost savings on property transactions.
• Tax Benefits: Eligibility for tax exemptions under the Income Tax Act. Donations to registered trusts may be eligible for tax deductions for donors (Section 80G).
• Access to Government Grants and Funding: Increased opportunities to secure funding for projects.
• Enhanced Credibility: Builds trust and attracts donors, supporters, and collaborations.

Documents Required for Trust Registration

• Trust Deed: The foundational document outlining the trust’s objectives, rules, and regulations.
• Proof of Identity and Address: For all trustees.
• Proof of Address of the Trust: Registered office address.
• Bank Account Details: Of the trust.
• PAN Card of the Trust: A unique identification number for the trust.

Eligibility Criteria for Trust Registration

• Competent and Willing Trustees: Individuals or entities capable of managing the trust’s assets.
• Minimum Two Trustees: Required for trust formation.
• Lawful Activities: The trust’s objectives must be legal and permissible.
• Charitable Focus: The trust must operate within charitable, religious, educational, or social welfare domains.
• Non-Profit Operation: Income and property must be used solely for the trust’s stated objectives.
• Trust Deed Execution: A legally sound trust deed is essential.
• Regulatory Compliance: Obtaining necessary approvals, submitting required documents, and paying applicable fees are crucial.
• Ongoing Compliance: Adhering to all applicable rules, regulations, and reporting obligations is mandatory.