Can a charitable trust de-register
ASHWANI GAGNEJA
(Querist) 04 December 2011
This query is : Resolved
Sirs,
Can a Charitable Trust registered with both Sub Registrar & Registrar of Firms & Societies get de-regiter with Registrar of Societies & still avail the Income Tax exemtion.
Advocate. Arunagiri
(Expert) 04 December 2011
What do you mean by de-register?
What is the need and connection of the trust with the registrar of societies or firms?
VENKATESH HEGDE
(Expert) 05 December 2011
As per my knowledge, for the income tax exemptions The trust should get itself registered with the commissioner under s 12AA within the time prescribed by s 12A(a). The commissioner has discretion to entertain an application for registration filed out of time.
Shailesh Kr. Shah
(Expert) 05 December 2011
There is no such provision to de-register in the societies act.
malipeddi jaggarao
(Expert) 06 December 2011
I quote the from the extracts reply from a thread - reply given by one of the experts Mr.Vishal in this contest:
Public charitable trusts, as distinguished from private trusts, are designed to benefit members of an uncertain and fluctuating class. In determining whether a trust is public or private, the key question is whether the class to be benefited constitutes a substantial segment of the public. There is no central law governing public charitable trusts, although most states have "Public Trusts Acts." Typically, a public charitable trust must register with the office of the Charity Commissioner having jurisdiction over the trust (generally the Charity Commissioner of the state in which the trustees register the trust) in order to be eligible to apply for tax-exemption.
In general, trusts may register for one or more of the following purposes:
Relief of Poverty or Distress;
Education;
Medical Relief;
Provision for facilities for recreation or other leisure -time occupation (including assistance for such provision), if the facilities are provided in the interest of social welfare and public benefit; and
The advancement of any other object of general public utility, excluding purposes which relate exclusively to religious teaching or worship.
At least two trustees are required to register a public charitable trust. In general, Indian citizens serve as trustees, although there is no prohibition against non-natural legal persons or foreigners serving in this capacity.
Legal title of the property of a public charitable trust vests in the trustees. Trustees of a public charitable trust may not, however, in any way use trust property or their position for their own interest or private advantage. Trustees may not enter into agreements in which they may have a personal interest that conflicts or may possibly conflict with the interests of the beneficiaries of the trust (whose interests the trustees are bound to protect). Trustees may not delegate any of their duties, functions or powers to a co-trustee or any other person, except that trustees may delegate ministerial acts. In essence, trustees may not delegate authority with respect to duties requiring the exercise of discretion.
Indian public charitable trusts are generally irrevocable. If a trust becomes inactive due to the negligence of its trustees, the Charity Commissioner may take steps to revive the trust. Furthermore, if it becomes too difficult to carry out the objects of a trust, the doctrine of cy pres, meaning "as near as possible," may be applied to change the objects of the trust. Thus, it appears that grantors can feel fairly secure that the charitable nature of a trust will be honored, even if the original, specific purposes of the trust cannot be carried out.
I fully agree with MR.Vishal. Expert MR.Venkatesh also right as regards registration for Income Tax Exemption.
DEFENSE ADVOCATE.-firmaction@g
(Expert) 05 December 2011
