Official registered constitutional charter of a non-profit public charitable trust executed under the Indian Trusts Act and Registration Act, defining settled property, non-profit charitable objects, and serving as the foundational legal instrument for obtaining Section 12A and 80G tax-exemption orders from the Income Tax Department
To qualify for Section 12A and 80G exemptions, the trust deed MUST contain explicit statutory clauses declaring the trust 'Irrevocable' and specifying that upon dissolution, any remaining assets will NOT be shared among trustees, but transferred to another trust with similar charitable objects.
💡 A Public Charitable Trust Deed is a legal charter signed by the Settlor and Trustees and registered at the local Sub-Registrar's Office. It transfers an initial corpus to a board of trustees to carry out charitable activities for the public without private profit. Once registered, the deed is used to secure PAN, a bank account, and statutory tax exemptions from the Income Tax Department under Section 12A (exempting trust income from income tax) and Section 80G (providing a 50% tax deduction to donors).
Evaluating non-profit entity structures under Indian statutory law for philanthropy and CSR funding.
| Entity Structure | Governing Statute | Minimum Promoters / Members | Administrative Complexity & Governance |
|---|---|---|---|
| Public Charitable Trust | Trust Registered under Indian Trusts Act / Registration Act | Simple, flexible philanthropic foundation with low recurring statutory compliance | Minimum 2 trustees; governed by registered trust deed; ideal for family foundations, temples, and schools. |
| Section 8 Company | Companies Act, 2013 Non-Profit Corporation | Nationwide corporate NGO structure preferred by institutional donors, international agencies, and major CSR funds | Minimum 2 directors/shareholders; high MCA corporate filing compliances; high credibility and transparency. |
| Registered Society | Societies Registration Act, 1860 | Democratic membership-driven organization for clubs, cultural groups, and community associations | Minimum 7 members; annual general body meetings and registrar filings; democratic management. |
Deed registration completed at Sub-Registrar Office within 1 to 3 working days; provisional 12A and 80G tax exemptions (Form 10AC) granted online within 7 to 15 working days; final 5-year registration (Form 10AD) approved within 3 to 6 months.
Sub-Registrar stamp duty (typically ₹500 to ₹2,000 depending on state stamp schedule and settled corpus amount) plus registration fees of ₹500 to ₹1,100; zero statutory fees for filing Form 10A/10AB on the Income Tax e-Filing portal.
Minimum of two individuals of legal majority and sound mind (Settlor and at least two Trustees); establishment of an irrevocable non-profit public charitable purpose (relief of poverty, education, medical relief, environmental protection, or advancement of general public utility).
Philanthropists, social workers, educational societies, healthcare NGOs, community development foundations, and religious institutions establishing a legally recognized non-profit trust in India to mobilize public donations, receive Corporate Social Responsibility (CSR) funds, and grant tax deductions to donors.
Draft the deed outlining non-profit charitable objectives, powers of trustees, quorum rules, audit requirements, and irrevocable dissolution clauses.
Print the deed on stamp paper of appropriate denomination as per state stamp duty laws and obtain signatures of the Settlor and Trustees on all pages.
The Settlor, Trustees, and two witnesses appear before the local Sub-Registrar of Assurances for biometric fingerprinting, facial capture, and deed registration.
Apply for the trust's PAN card (Status: AOP/Trust) on the NSDL portal and open a dedicated non-profit institutional bank account.
Log into https://www.incometax.gov.in/, submit Form 10A along with the registered deed, PAN, and balance sheet to receive the 16-character Unique Registration Number (URN) in Form 10AC.
When a trustee resigns or a new trustee is appointed, pass a Board Resolution and execute an 'Addendum / Supplementary Trust Deed' registered at the Sub-Registrar Office.
Provisional registrations are valid for 3 years; apply in Form 10AB at least 6 months before expiry or within 6 months of commencing charitable activities to obtain the 5-year regular registration.
Under Section 12AB(1)(b)(ii), any modification to trust objectives must be formally communicated to the CIT (Exemptions) within 30 days of deed amendment.
Access https://www.incometax.gov.in/ using your Trust PAN and administrative password.
Select the assessment year and navigate to Form 10A / Form 10AB records.
Download the digitally signed Certificate of Registration issued by the Commissioner of Income Tax (Exemptions) bearing your 16-digit URN.
Remedies for online application deficiencies issued by the Central Processing Centre (CPC) and CIT (Exemptions).
| Issue Observed | Probable Reason | Actionable Remedy |
|---|---|---|
| Income tax notice issued: 'Genuineness of Activities Cannot Be Established' | Photographic evidence, expenditure bills, and annual activity reports submitted with Form 10AB | Compile a detailed Activity Report containing geotagged event photos, audited accounts, beneficiary registers, and newspaper clippings of charitable events. |
| 80G registration rejected due to 'Missing Non-Distribution of Profit Clause' | Deed wording regarding trustee remuneration and asset alienation | Execute a Supplementary Trust Deed explicitly clarifying that trustees serve in an honorary capacity and assets cannot be alienated for private gain. |
| Donor unable to claim 80G deduction due to Form 10BD mismatch | Annual filing of Form 10BD (Statement of Donations) by the trust | File the annual Statement of Donations in Form 10BD on the e-filing portal before May 31st and issue Certificate of Donation in Form 10BE to the donor. |
Section 12A (now 12AB) grants tax exemption to the trust itself, ensuring that voluntary contributions, donations, and investment income earned by the trust are exempt from income tax. Section 80G grants a tax benefit to the donor, allowing them to deduct 50% of the donated amount from their taxable income.
Generally, trustees serve in an honorary capacity. However, reasonable remuneration may be paid to a trustee for specific professional services rendered to the trust, provided it is authorized by the trust deed, approved by a board resolution, and does not violate Section 13(1)(c) of the Income Tax Act.
Yes. If a charitable trust intends to apply for government grants or CSR funding, it must register on the NITI Aayog NGO-Darpan portal to receive a unique NGO Darpan ID.
Under the proviso to Section 2(15) of the Income Tax Act, a trust carrying out an activity in the nature of trade, commerce, or business can retain its charitable status only if the gross receipts from such commercial activity do not exceed 20% of the trust's total receipts and the activity is directly incidental to its primary charitable purpose.
Statutory rules, Form 10A/10AB instructions, and FAQs on Sections 12AB and 80G.
Rules governing CSR-1 registration for charitable trusts receiving corporate social responsibility funding.
Irrevocable registered legal instrument executed under the Registration Act, 1908 and Hindu Succession Act, whereby a legal co-heir releases or surrenders their undivided share in inherited or ancestral property in favor of other legal co-heirs without or with consideration
Legally binding registered instrument executed under the Registration Act, 1908 and Hindu Succession Act to formally divide joint family ancestral property or co-owned real estate among legal coparceners by metes and bounds, creating separate, independent ownership titles
Formal legal instrument executed under the Powers of Attorney Act, 1882 and Sections 201–208 of the Indian Contract Act, 1872 to immediately cancel, annul, and terminate all managerial, financial, or property powers previously granted under a General or Special Power of Attorney
Registered supplementary legal instrument executed under Section 26 of the Specific Relief Act, 1963 and the Registration Act, 1908 to formally correct bona fide clerical, typographical, numerical, or boundary description errors in a previously registered Sale Deed, Gift Deed, Lease, or Mortgage Deed without altering the original conveyance
How to write, sign, witness, register (optional) and store a valid will in India, and what happens after death
Legally binding confidentiality contract executed under the Indian Contract Act, 1872, the Information Technology Act, 2000, and the Specific Relief Act, 1963, protecting proprietary trade secrets, intellectual property, customer lists, software algorithms, and sensitive commercial data from unauthorized disclosure or misappropriation
Official police acknowledgment report registered under Section 155 CrPC / Section 174 BNSS or State Lost Article Portals, mandatory for issuing duplicate SIM cards, lost Aadhaar/PAN cards, lost Indian Passports, and lost Driving Licences
Deed registered under Registration Act, 1908; tax exemptions granted under Sections 12AB and 80G by the Principal Commissioner of Income Tax (Exemptions).
Income Tax Department e-Filing Portal →