Registration of Trust deed--is it necessary?

Where is the trust created?

The procedure for registration is available under Section 12AA under IT Act 1961.   According to the section, we cant say that Trust registration is compulssory  but subject to the decison of the the Verifying authority . He should satisfy the genuiness of activities of the turst or institution and may also make such inquires as he may deem necessary  on the entire aspects and he has to satisfy himself about the objects of the trust.  Anyway an application for registration as charitable instituion can be filed by an un-registered trust. and if the Commissoner or such authorities are satisfied,  registration can be issued as chariftable trust.  But normally for the general purpose, registraion is compussory. So if  the Commissioner is insisting on the Registration, you can not desist. 

    It is advisable that, a registered trust is more valuable than unregistered one.

Rema

Thanks a lot to Vishalji, SKJ and Rema for throwing light on the subject.   My query is whether there is any statutory requirement for registering with a Societies Registrar or is it optional?  What is the exact difference between notarisation and registration.  Can u quote any case law in support of the contention that the registration with a state authority is compulsory before filing application u/s.12AA registration.  Kindly throw some light on this plz.

In my personal opinion if the trust is endowed with immovable property then registration of such trust is necessary so that the property is not misused for any other purpose other than the objects of the trust. However, a trust created with a fixed amount is not required to get registered, further it has to be noted that law regarding trusts differ from state to state hence it is necessary to know the place of creation to guide properly.

Thanks SKJji.  Can u quote any case law to support that registration is necessary for approaching the IT Department for registration.  I will be thankful.

Vishalji, it is in AP.

what if a sale has been done by an unregistered trust ...???     will it be valid ......   ??    do un registered trust neeed to take charity commissioners permission before selling a property of the trust  ...pls    refer to sections ....