Friday, November 26



A public charitable or religious institution can be formed either as a Trust
or as a Society or as a Company registered u/s 25 of the Companies Act.

It generally takes the form of a trust when it is formed primarily by one or
more persons.

To form a Society at least seven persons are required. Institutions engaged
in promotion of art, culture, commerce etc. are often registered as
non-profit companies.

These forms are enumerated as under :

1. Charitable Trust settled by a settlor by a Trust Deed or under a

2. Charitable or religious institution / association can be formed as a

3. Charitable institution can be formed by registering as a company
u/s. 25 of the Companies Act, 1956, as non profit company (without addition
to their name, the word "Limited" or "Private Limited").

1. *Registration under Income-tax Act*

1. Charitable or religious trusts, societies and companies
claiming exemption under sections 11 and 12 of the Income-tax Act are
required to obtain registration under the Act. Private/family trusts are
neither allowed such exemption nor required to seek registration under the
Income-tax Act. The detailed procedure is as under

2. Registration of Trust under Income-tax Act procedure for
registration u/s. 12AA of I.T. Act.

1. Application for registration in Form No.10A in duplicate.

2. List of Name and Address of the Trustees

3. Copy of Registration Certificate with Charity Commissioner or copy
of application to him.

4. Certified True Copy of the Trust Deed.

5. PAN No. or Copy of application of the Trust.

6. PAN of the trustees.

3. *Procedure for registration (Sec 12AA)
*The Commissioner, on receipt of an application for registration of a trust
or institution made under clause (a) of section 12A, shall –

a. call for such documents or information from the trust or
institution as he thinks necessary in order to satisfy himself about the
genuineness of activities of the trust or institution and may also make such
inquiries as he may deem necessary in this behalf; and

b. after satisfying himself about the objects of the trust or
institution and the genuineness of its activities he –

i. shall pass an order in writing registering the trust or

ii. shall, if he is not so satisfied, pass an order in writing
refusing to register the trust or institution,

iii. and a copy of such order shall be sent to the
that no order under sub-clause (ii) shall be passed unless the applicant has
been given a reasonable opportunity of being heard.


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