We at GrowUp Accounting Solutions have facilitated many people to set up trusts and societies in Bangalore. We have also represented at the tax department to obtain Tax exemptions.

A trust can be registered under Indian Trust Act, 1882 and a society can be formed under the provisions of Societies Registration Act. Trust created for advancement of education, promotion of public health and comfort, relief of poverty, furtherance of religion, or any other purpose regarded as charitable in law. Benevolent and philanthropic purposes are not necessarily charitable unless they are solely and exclusively for the benefit of public or a class or section of it. Charitable trusts(unlike private or non-charitable trust) can have perpetual existence and are not subject to laws against perpetuity. They are wholly or partially exempt from almost all taxes.

A group of people formed as a separate organization and which has as a stated purpose some charitable or benevolent purpose either in regards to the public at-large or in regards to the common interests of the members, and which operates as nearly as possible at cost.

Any group of persons can form a cooperative society of their own if they so like to act jointly for the common benefit of each other. But that is not the legal way of formation the cooperative society. All societies must be formed under the Cooperative Societies Act, 1912 or under the relevant state cooperative laws.

How many people are required to start a Trust?

At least two trustees are required to register a public charitable trust. However, a minimum of seven members are required for formation of a society.

Is there any annual filing to be done?

There is no requirement for annual filing in case of Trusts. However, societies must file annual returns with the Registrar of societies.

Can Trusts and societies get Income Tax Exemption?

Yes, both Trusts and societies are eligible for tax exemption provided the exemption criteria of the Income Tax Act are complied with.

In case you need any of these services, please email support@growupaccountingsolutions.com or call us @ +91-8197971193 / +91-8217422835