Registered Charitable Trust in India | Savlana Init

Trust · Charitable Trust

Registered Charitable Trust — Tax-Exempt. Donor-Ready. Compliant.

CA assistance for registered charitable trust setup in India — Sub-Registrar or Charity Commissioner registration, Section 12A income tax exemption, 80G donor deduction approval, Form 10BD filing, and annual ITR-7 compliance.

A Registered Charitable Trust is a public trust that has been formally registered under the applicable state law — either under a state Public Trust Act (Maharashtra, Gujarat, Rajasthan, Madhya Pradesh, and others have specific legislation) or under the Registration Act with the Sub-Registrar — and has obtained the income tax registrations required for a compliant non-profit operation. Registration distinguishes a properly constituted charitable trust from an informal or unregistered arrangement and is the prerequisite for obtaining Section 12A income tax exemption and 80G donor deduction status.

Registration with the Charity Commissioner (in states that have Public Trust Acts) requires filing an application with the prescribed form, the trust deed, details of the trustees and their addresses, and the list of assets to be settled. Once registered, the charitable trust is assigned a registration number and is required to file annual accounts with the Charity Commissioner, maintain a register of properties, and obtain prior permission for certain transactions involving trust property. The Charity Commissioner has oversight authority over all registered trusts in the state.

Beyond state registration, the trust must obtain Section 12A registration with the Income Tax Department (Form 10A) to exempt its income from income tax, and 80G registration to enable donors to claim tax deductions on their contributions. We handle the complete process — trust deed drafting, state registration, Form 10A applications for 12A and 80G, annual ITR-7 filing, Form 10BD donor statement, and Form 10BE certificate issuance. We also advise on the income application, accumulation, and investment norms under Section 11 of the Income Tax Act that the trust must satisfy to retain its exemption year on year.

Our Registered Charitable Trust Services

Trust Deed Drafting for Charitable Objects

Drafting the trust deed with correctly framed charitable objects clause — qualifying for 12A registration and covering intended activities.

Charity Commissioner Registration

Filing the registration application with the state Charity Commissioner including trust deed, trustee details, and asset schedule.

Sub-Registrar Registration

Execution and registration of the trust deed with the Sub-Registrar of Assurances for states without a specific Public Trust Act.

Section 12A Registration (Form 10A)

Application to the Income Tax Department for provisional and regular 12A registration to exempt the trust's charitable income from tax.

80G Registration

Application for 80G approval so that donors can claim income tax deduction of 50% on donations to the trust.

Form 10BD — Donor Statement

Annual filing of the statement of donations received with the Income Tax Department as required for 80G registered trusts.

Form 10BE — Donor Certificates

Issuance of Form 10BE donation certificates to all donors for claiming 80G deduction in their income tax return.

ITR-7 & Section 11 Compliance

Annual income tax return in ITR-7 with Section 11 computation, income application statement, and Charity Commissioner annual return filing.

Our Process

Objects Framing & Eligibility

We ensure the charitable objects qualify for 12A and frame the trust deed accordingly before drafting.

Trust Deed Execution & State Registration

Trust deed is executed on stamp paper and registered with the Charity Commissioner or Sub-Registrar.

12A & 80G Applications

Form 10A is filed with the CBDT for 12A and 80G; provisional registration enables the trust to receive donations during the approval period.

PAN, Bank Account & Charitable Activity

PAN is obtained; the trust opens a bank account and begins its charitable activities within the permitted scope.

Annual Compliance Management

ITR-7, Form 10BD, Form 10BE, and Charity Commissioner annual return are filed on time each year.

Why It Matters

✓State registration provides legal recognition and Charity Commissioner oversight

✓Section 12A exempts all charitable income from income tax

✓80G enables donors to claim tax deduction — essential for corporate CSR

✓Form 10BD and 10BE donor compliance managed annually

✓ITR-7 filed with correct Section 11 income application computation

✓Charity Commissioner annual accounts and returns filed as required

✓Objects clause framed to cover intended activities and qualify for exemption

✓Full compliance support — no trustee needs to track multiple due dates

Frequently Asked Questions

A registered charitable trust has been formally registered under the applicable state Public Trust Act or with the Sub-Registrar and holds Section 12A and 80G registrations from the Income Tax Department. An unregistered trust may still operate but cannot obtain 12A or 80G registration, its income is taxable, and donors cannot claim deductions on their contributions. Registration is the foundation of a compliant, tax-efficient charitable trust.

States with specific Public Trust legislation requiring registration with the Charity Commissioner include Maharashtra (Bombay Public Trusts Act 1950), Gujarat (Gujarat Public Trusts Act 1950), Rajasthan (Rajasthan Public Trusts Act 1959), Madhya Pradesh (MP Public Trusts Act 1951), and Karnataka (Karnataka Hindu Religious Institutions and Charitable Endowments Act for religious trusts). In other states, charitable trusts register under the Registration Act with the Sub-Registrar.

The Income Tax Department issues provisional 12A and 80G registration within 1 month of filing Form 10A, allowing the trust to receive donations immediately. Regular (permanent) 12A registration is granted after 3 years of operations and is valid for 5 years before renewal. 80G provisional approval is similarly valid for 3 years. Renewal applications must be filed 6 months before expiry.

A registered charitable trust must: (1) file ITR-7 annually with the Income Tax Department, (2) file Form 10BD (donor statement) by 31 May each year, (3) issue Form 10BE certificates to donors, (4) file annual accounts and returns with the Charity Commissioner (in applicable states), (5) apply at least 85% of income to charitable objects, and (6) renew 12A and 80G every 5 years.

A charitable trust can accumulate up to 15% of its income without restriction in any financial year. If it needs to accumulate more (for a specific purpose such as constructing a building), it must file Form 10 with the Income Tax Department specifying the purpose and expected utilisation period, and invest the accumulated funds in the instruments prescribed under Section 11(5) of the Income Tax Act.

If a charitable trust loses its 12A registration — due to violation of conditions, non-renewal, or cancellation by the Income Tax Department — all its income becomes taxable at normal rates from the date of cancellation. Donors cannot claim 80G deductions for donations made after cancellation. The trust can apply for fresh registration but must restart the application process.

Ready to register your charitable trust?

We handle the state registration, 12A and 80G applications, annual ITR-7, Form 10BD, and all ongoing compliance — so your charitable trust is properly registered and fully compliant from day one.