Trust Registration (Charitable Trust)
Trust registration means signing a trust deed on stamp paper and registering it with the Sub-Registrar under the Registration Act, 1908. A charity in Haryana or Delhi needs it before it can open a bank account or apply for income-tax exemption. The signed deed must be presented within four months.
What it is
A trust is an arrangement in which a settlor hands money or property to trustees to hold for a purpose. If the purpose is public, such as education or medical relief, it is a public charitable trust. If it serves named people, such as your children, it is a private trust.
The Indian Trusts Act, 1882 governs private trusts, and its Section 1 keeps public and private religious or charitable endowments outside it. Haryana and Delhi have no separate public trusts law, so a charitable trust is created by a deed on stamp paper registered with the Sub-Registrar under the Registration Act, 1908. Registration is compulsory under Section 17 where the deed creates rights in immovable property worth ₹100 or more.
Tax exemption is a separate step. From 1 April 2026, registration sits in section 332 of the Income-tax Act, 2025 (the old 12A/12AB) and donor approval in section 354 (the old 80G).
Who it applies to
Start a charity with a small board
Say retired teachers in Faridabad run free evening classes and now want to take donations properly. A trust with two or three of them as trustees fits, and control stays with them.
Hold property for named relatives
A Ballabgarh family that wants to keep ancestral land for its grandchildren needs a private trust under the Indian Trusts Act, 1882. For immovable property, Section 5 requires a registered deed. No charitable exemption applies.
Formalise a committee that collects money
Think of a temple or library committee that now handles real money. A registered deed moves the funds into the trust’s own bank account, with written rules.
Why it matters
Show a deed the bank will accept
Banks and the Income Tax Department both ask for the registered deed. No deed, no bank account.
Claim the income-tax exemption
Section 332 registration lets the trust claim exemption on income applied to its objects, with at least 85% of income applied in the year.
Give donors a deduction
With approval under section 354, donors can claim a deduction under section 133 (the old 80G).
Trust vs society vs Section 8 company
All three can register under sections 332 and 354. They differ in control and paperwork.
| Public charitable trust | Society | Section 8 company | |
|---|---|---|---|
| Main law | Registration Act, 1908 (the deed) | Societies Registration Act, 1860 or the state’s own law | Section 8, Companies Act, 2013 |
| Minimum people | Settlor and trustees; we advise at least two trustees | At least seven members | At least two directors and two members |
| Registered with | Sub-Registrar | State Registrar of Societies | Registrar of Companies, via SPICe+ on the MCA V3 portal |
| Changing the rules | As the deed’s amendment clause allows | Members amend the bye-laws | Memorandum or articles changed only with Central Government approval |
| Best fit | A small group wanting tight control | A membership body wanting elections | A larger NGO wanting company-style governance |
Expecting large institutional funding? Look at Section 8 company registration. Want members and elections? Registering a society may suit you better.
Documents required
From the settlor and each trustee
- PAN card
- Aadhaar or another identity and address proof
- Two passport-size photographs
For the trust’s office
- Ownership proof or rent agreement
- No-objection letter from the owner
- Recent utility bill for the address
For the Sub-Registrar visit
- Trust deed on e-stamp paper
- Two witnesses with identity proof
- Details of the corpus or property settled on the trust
How it works
Fix the objects, trustees and corpus
We agree the objects, the trustees and the settlor’s starting contribution with you. Here is the catch: the objects must be charitable and only charitable. Mix in a business purpose and the tax registration suffers.
Draft a deed that will pass tax scrutiny
The deed sets out the objects, the trustees’ powers, how trustees join and leave, and how accounts are kept and audited. A dissolution clause sends leftover assets to another charity, never to the trustees.
Buy e-stamp paper and sign
In Haryana, you pay the stamp duty and generate e-stamp paper through the e-GRAS portal. The amount depends on what you settle on the trust, so we confirm it before you pay.
Register the deed with the Sub-Registrar
The settlor signs before the Sub-Registrar with two witnesses, who are photographed and identified. The deed must be presented within four months of signing.
Get the PAN and open the bank account
With the registered deed, we apply for the trust’s PAN and help the trustees open its bank account. We also register it on NGO Darpan.
File Form 104 for sections 332 and 354
We file Form 104 (the old Form 10A) on the Income Tax e-filing portal for provisional registration and donor approval. The order comes within one month from the end of the month you apply and is valid for three tax years.
After the deed is registered
Keep books and file ITR-7 on time
An audit applies once total income before the exemption exceeds the maximum amount not chargeable to tax. Form 112 replaces Forms 10B and 10BB. Monthly bookkeeping for your trust keeps the audit short.
Register on NGO Darpan
NITI Aayog’s NGO Darpan portal gives the trust a unique ID. You need it for grants from central ministries and departments, and FCRA and income-tax applications ask for it.
Clear FCRA before foreign money arrives
A Gurugram trust offered a grant from abroad must first get registration or prior permission from the Ministry of Home Affairs under the Foreign Contribution (Regulation) Act, 2010. The money then lands in its FCRA account at SBI’s New Delhi Main Branch.
Timelines
Present the deed within four months
Section 23 of the Registration Act, 1908 allows four months from signing. In practice, registration takes one to two weeks once the papers are ready.
Expect the provisional order in a month
Form 104 orders come within one month from the end of the month of application. Form 105 is due at least six months before provisional registration ends, or within six months of starting activities, whichever is earlier.
Diary three yearly dates
Form 113 (donation statement) and Form 114 certificates by 31 May; the Form 112 audit report by 30 September; ITR-7 by 31 October. For FY 2025-26, the audit-case return date is extended to 21 November 2026.
What happens if you skip a step
An unregistered deed can’t carry property
Under Section 49 of the Registration Act, 1908, an unregistered deed that needed registration does not affect the immovable property in it and cannot prove that transaction.
Skip section 332 and the surplus is taxed
A trust without section 332 registration pays tax on its surplus, and donors get no deduction.
Late filings put the exemption at risk
A late audit report can cost the year’s exemption, and a late Form 113 denies donors their deduction. Missing the renewal date risks the registration itself, though the Commissioner can condone delay for reasonable cause under section 332(4).
Frequently asked questions
What is the difference between a public charitable trust and a private trust?
A public charitable trust works for the public or a section of it, while a private trust works for named people. The Indian Trusts Act, 1882 governs private trusts, and its Section 1 keeps charitable endowments outside it. A public charitable trust can register under section 332 and claim exemption; a private family trust cannot. Unsure which fits? We will work it out with you on the first call.
How many trustees does a charitable trust need?
We recommend at least two trustees. No statute in Haryana or Delhi fixes a minimum for a public trust, but two trustees give you a working board and continuity if one steps down. The settlor can also be a trustee, and there is no upper limit. The deed’s appointment clause lets you add trustees later, and we draft it so the trust never gets stuck.
How long does trust registration take?
One to two weeks for the deed, once the documents and stamp paper are ready. Section 23 of the Registration Act, 1908 allows four months from signing. Provisional registration under section 332 follows, with the order due within one month from the end of the month you apply. In practice, getting the deed right takes the most effort, and that part is ours.
Are 12A and 80G still available under the new Income-tax Act?
Yes, under new numbers. From 1 April 2026, 12A/12AB registration sits in section 332 of the Income-tax Act, 2025, and 80G approval in section 354. A new trust files Form 104 (the old Form 10A) for provisional registration and approval, valid for three tax years. Regular registration in Form 105 lasts five tax years, or ten where total income has not exceeded ₹5 crore in each of the two preceding tax years. Your trust can still get both.
Does a registered trust have to file an income tax return?
Yes, every year, in ITR-7. Accounts must be audited once total income before the exemption exceeds the maximum amount not chargeable to tax. From tax year 2026-27, the Form 112 audit report is due by 30 September and the return by 31 October. For FY 2025-26, trusts still use the old forms, and audit-case returns are due by 21 November 2026. We diary every date for you.
How much of its income must a trust spend each year?
At least 85% of its income must be applied to its objects in the year; up to 15% can be set apart freely. Saving up for a school building? The trust can accumulate income for a stated purpose for up to five years by filing Form 109 (the old Form 10) by the return due date. Income left unapplied outside these routes is taxed. We plan the year’s spending with you so nothing is exposed.
Can a charitable trust accept foreign donations?
Yes, but only with registration or prior permission from the Ministry of Home Affairs under the Foreign Contribution (Regulation) Act, 2010. Foreign money must first arrive in the designated FCRA account at the State Bank of India, New Delhi Main Branch. The trust can then open another FCRA account in any scheduled bank to keep or use it. We check eligibility before any foreign donor commits.
Can the trust deed be changed after registration?
Yes, if the deed has an amendment clause. The trustees sign a supplementary deed and register it with the Sub-Registrar, like the original. If the change touches the trust’s objects, the trust must apply in Form 105 within 30 days of the modification so its section 332 registration continues. We write the amendment clause with this in mind, so later changes stay simple.
What it costs
Our fee plus the government fee that applies to your case, quoted before you commit. Tell us the situation and we will price it exactly.
At the deed stage, the government costs are the stamp duty and the Sub-Registrar’s registration fee, both set by your state’s schedule and the property you settle.
Ready to begin?
Tell us what your trust will do and who will run it. We take it from deed to section 332 registration.