a. Introduction

b. Why You Should Register

• Legal recognition to receive donations and manage funds
• Eligibility to apply for 12A and 80G tax exemptions under the Income Tax Act
• Transparency and accountability in fund utilization
• Protection of trust property and continuity beyond the founder’s life
• Credibility with CSR donors, government grants, and foreign funding agencies

c. Compliance and Taxation

• Governed by the Indian Trusts Act, 1882 or respective state trust laws (e.g., Maharashtra Public Trusts Act).
• Registration under 12A exempts the trust’s income from taxation.
• 80G registration allows donors to claim tax deductions.
• Annual filing of Income Tax Return (Form ITR-7) is mandatory.
• Audit is compulsory if the total income exceeds the prescribed limit (usually ₹2.5 lakh).
• Must maintain proper accounts, minutes, and donation registers.

e. When You Should Convert

• A Trust may be converted into a Section 8 Company or Society when:
• You want to expand operations across multiple states
• You need corporate status for grants, FCRA, or CSR eligibility