Procedure for registration of a trust deed.

A model Trust deed and various forms for registration  i.e. application for the registration of a public charitable trust, Consent letter are enclosed herewith for ready reference.

MODEL TRUST DEED OF A PUBLIC CHARITABLE TRUST 

THIS DEED OF TRUST executed on this _______________________ day of __________________ year 20____, _______________________ BETWEEN __________________________________________ (Party of the first part) hereinafter called " SETTLOR OF THE TRUST" ________________________________________________________
________________________________________ AND _____________________________________ .

1. SHRI.                             S/O. SHRI                              , of ____________ &

2. SHRI.                             S/O. SHRI.                             , of ____________ &

3. SMT.                             W/O SHRI.                              , of ____________

(Hereinafter called " The Trustees" which expression shall unless repugnant to the context or meaning thereof be deemed to include the survivors or survivor of them and the trustees or trustee for the time being of these presents and their heirs, executors and administrators of the last surviving trustee, their or his assignees) of the other part;

WHEREAS the party hereto of the first part is possessed of the sum of Rs. ___________/- (Rs. __________ Only) as his absolute property and he is desirous of creating a Religious/ Charitable/Educational Trust for the benefit of the humanity at large.

AND WHEREAS each of the parties hereto of the "Other Part" has individually and jointly has agreed to act as Trustees of the Trust, proposed by the party of the first part.

AND WHEREAS nothing contained in this deed shall be deemed to authorize the trustees to do any act which may in any way be construed statutory modifications thereof and all activities of the trust shall be carried out with a view to benefit the public at large, without any profit motive and in accordance with the provisions of the Income-tax Act, 1961 or any statutory modification thereof.

AND WHEREAS the trust is hereby expressly declared to be a public charitable trust and all the provisions of this deed are to be constituted accordingly.

NOW THIS INDENTURE WITNESSTH AS FOLLOWS :

PROVIDED the Trust may assist/donate the other TRUST to carry out the various objects mentioned in the objects clause in such manner and to the extent the Trustees may decide upon from time to time.
 

                                 i.            All monies, which shall not immediately required for current needs shall be invested by the Trustees in eligible securities and investments, or in banks. Such investments shall be in the name of Trust or Trustees.

                               ii.            That the trustees shall invest the trust fund, carry on any business with the trust fund and/or enter into partnership on behalf of the trust, as they may deem fit.

                              iii.            That the trustees shall manage the trust fund and investments thereof as a prudent man would do the same. They shall recover all outstandings and meet all recurring and other expenses incurred in the upkeep or management thereof.

                            iv.            That the trustees shall receive and hold the income of the trust on behalf and for the benefit of the beneficiaries under the trust.
 

That the trustees shall have the following powers :

                                 .            to manage all the assets and/or properties of the trust including the conduct of business;

                                 i.            to appoint employees and to settle the terms of their service, remuneration and termination;

                               ii.            to look into the management of the trust;

                              iii.            to invest the funds of the trust, in bank or in the purchase of company shares or securities or other movable and movable and immovable properties;

                             iv.            to sell, alter, vary, transpose or otherwise dispose or alienate the trust properties or any investment representing the same for consideration and to reinvest the same;

                               v.            to pledge or mortgage the trust properties for raising loans;

                             vi.            to open the bank accounts in the name and on behalf of the trust and to operate the same;

                            vii.            To enter into a partnership on behalf of the trust with any other party or parties;

                          viii.            To pay all charges, impositions and other outgoings payable in respect of the trust properties and also to pay all cost of the incidental to the administration and management of the trust properties;

                             ix.            To file suit on behalf of the trust and to refer to arbitration all actions proceedings and disputes touching the trust properties and to compromise and compound the suits filed;

                               x.            To accept any gift, donation or contribution in cash or in kind from anyone for the objects of the trust;

                             xi.            To seek legal opinion of lawyers and/or Chartered Accountants as and when required;

                            xii.            To nominate their representatives for any of the aforesaid purposes.
 

                                 .            The Trustee shall keep proper books of account of all the assets, liabilities and income and expenditure of the Trust and shall prepare an Income and Expenditure Account and Balance Sheet for every year as on the last day of March.

                                 i.            The accounts of every year shall be audited by a Chartered Accountant or a firm of Chartered Accountants who shall be appointed for that purpose by the Trustees and the audited accounts shall be placed at a meeting of the Trustees, which shall be held before the end of the succeeding year.
 

The Trustees shall be indemnified against all losses and liabilities incurred by them in the execution of the Trust and shall have a lien over the funds and properties of the Trust for such indemnity.

IN WITNESS WHEREOF, The Parties hereunto have signed and delivered the presents on the day and year first hereinabove written.

                                                                                          SETTLOR

WITNESS :                                                                       1. TRUSTEE ____________

1.                                                                                   2. TRUSTEE ____________

2.                                                                                   3. TRUSTEE ____________

Form of Application for Registration of a Public Trust
Schedule II (Vide Rule 6)

To
The Deputy/Assistant Charity Commissioner,
............................................................................ Region/Sub-Region
In the matter of Public Trust* ..............................................................
.......................................................................................................

2.

I submit the following necessary particulars:–

(ai)

The designatioc n by which the public trust is or shall be known.
(Name of the Public Trust)

(i)

Names of the trustees and managers with their addresses

(ii)

Mode of succession to the trusteeship and managership

(iii)

Objects of the trust :

(iv)

(a)

Particulars of documents creating the trust
(attach copies)

(b)

Particulars other than documents about the origin or
creation of the trust.

(v)

Particulars of the scheme, if any, relating to the trust
(attach copy).

(vi)

Movable property with estimated value of each class
of such property.

(Note:– Entries should be made by board description
of classes of such property, e.g., furniture, books, etc.,
rather than of each individual article. Entry regarding
cash should be made only if such cash forms part of
the capital of the trust. In the case of scripts give
particulars of each security, stock, share and debenture
including the number which it bears).

(vii)

(a)

Details of immovable properties showing the
village or town where situate, along with C. S.,
Municipal or Survey No., area, assessment or Judi
and description of the tenure on which held (attach
certified copies of the entries in the Record of Rights,
city survey record or municipal record relating to
the properties).

1.

2.

3.

(b)

Estimated value of each immovable property:–

1.

2.

3.

(viii)

Sources of income of the trust.