Bank account for the trust

Aboobucker Siddik (Querist) 04 December 2011 This query is : Resolved
Is the bank account is important for the buying of properties in the name of trust?

Is there any concession in the stamp paper for the property registration in the name of trust?

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Raj Kumar Makkad (Expert) 04 December 2011
As per clauses inserted in Trust Deed, a bank account of trust is required to be opened though it is not mandatory for purchasing any immovable property for trust and there is even no rebate in stamp duty.

Advocate. Arunagiri (Expert) 04 December 2011
For buying a property bank account is not mandatory.

But, without bank account how the Trust will function.

No concession on stamp duty.

Shailesh Kr. Shah (Expert) 04 December 2011
no, no need to having bank account for buying of properties.

no, there is no concession in stamp paper for registration in the name of trust.

Sanjeev (Expert) 04 December 2011
Bank account is necessary as the basic purpose for trust creation would be to create a seperate legal entity and it is distinguished from the person who are over the helm of affairs of the trust.

The transactions of the trust cant be deemed to be taking place until trust bank is in operation. The trustee cant be using their individual bank accounts that would create taxation problems later.

Guest (Expert) 04 December 2011
I don't think the Trust would like to entertain untrustworthy financial transactions to remain unaccounted. So, for tax point of view, it is important for the Trust to open a bank account to properly account for the financial transactions and property purchased out of the funds of the Trust.

There is no concession in stamp duty for a Trust.

M/s. Y-not legal services (Expert) 04 December 2011
am also agree with sanjeevsir and dhingra sir., for maintain the proper accounts the bank account is must.,

ajay sethi (Expert) 04 December 2011
agree with experts

Rajeev Kumar (Expert) 04 December 2011
Agree with experts

Surendra Singh Chandrawat (Expert) 05 December 2011
Not important but better to have bank account for general financial transactions and tax related issues ion due course.