Chandru (ACCOUNTANT) 03 June 2023

Public charitable trust change in board of trustees to be reported to itax authorities

there has been a change in the board of trustees one has resigned and two have been appointed pl advise how to inform the income tax authorities as we are registered under section 12 A and 80 G

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Quick Summary

This discussion addresses how a public charitable trust should inform the income tax authorities about changes in its board of trustees. When a trustee resigns and new ones are appointed, especially for trusts registered under Section 12A and 80G, it's crucial to update official records. The process generally involves amending the Trust Deed, registering this amendment with the Sub-Registrar (SRO), and then submitting a copy to the IT authorities to reflect the current trustee list.

4 Replies

T. Kalaiselvan, Advocate (Advocate) 03 June 2023

A change of trustee involves the transfer of legal title of the trust's assets. However, CGT will not arise from the transfer of the trust's assets to a new trustee. This is due to the fact that the trustee holds legal title to the trust's assets for the benefit of the trust beneficiaries.

Chandru (ACCOUNTANT) 03 June 2023

QUERY IS NOT FROM A TAXATION ANGLE BUT TO INTIMATE THE CHANGES TO UPDATE THE RECORDS AS WHILE GETTING PAN, 12 A CERT 80 G CERT LIST OF THE THEN PRESENT TRUSTEES WAS GIVEN AND NOW THE CHANGE HAS OCCURRED SO HOW TO INFORM THE RESPECTIVE DEPTS CERTIFICATE ISSUERS ABOUT THE CHANGES

kavksatyanarayana (subregistrar/supdt.(retired)) 03 June 2023

You shall prepare an amendment to Trust deed changing trustees and register the same in SRO and send a copy to the IT authorities.

Harendra Kumar (A Practicing Lawyer) 06 June 2023

Hello,

Only members are having power to change management thrrough voting aftet that the same information have to pass beforre Ld. SRO as well as Ld IT Authroity.