Gratuity Trust Registration — Set Up Under the IT Act, Correctly.
Registering a gratuity trust means drafting a compliant deed, appointing trustees, and structuring the fund so it can later obtain Income Tax approval. We handle the full setup.
Contact UsRegistering a gratuity trust starts with executing an irrevocable trust deed that establishes the fund exclusively for the benefit of employees under the Payment of Gratuity Act, appoints a board of trustees (typically including employer and, in some structures, employee representatives), and sets out the rules for contributions, benefit calculation, and fund administration. The deed is registered with the local Sub-Registrar under the Indian Trusts Act/Registration Act, which is a prerequisite before Income Tax approval can be sought separately.
Getting the deed right at this stage matters because amending it later — to change trustees, funding rules, or administration terms — is its own filing exercise (see our Trust Deed Amendments page). We draft the deed to anticipate common changes (like adding group companies or changing the actuary/insurer) so routine changes don't require a full deed overhaul later.
Once the deed is registered, the trust needs a PAN, a bank account in the trust's name, and — critically — a funding arrangement, typically a group gratuity policy with an IRDA-licensed insurer, before it can proceed to seek Income Tax approval under Part C of the Fourth Schedule.
Our Trust Registration Services
Trust Deed Drafting
Drafting an irrevocable gratuity trust deed compliant with the Payment of Gratuity Act and Income Tax Fourth Schedule requirements.
Trustee Structure Advisory
Advising on trustee composition, quorum, and governance rules built into the deed.
Deed Registration
Registering the executed trust deed with the local Sub-Registrar as required under the Registration Act.
Trust PAN Application
Applying for a separate PAN for the trust, required for its bank account and future income tax filings.
Trust Bank Account Setup Support
Documentation support for opening a dedicated bank account in the trust's name.
Insurer/Group Gratuity Policy Coordination
Coordinating with an IRDA-licensed insurer to set up the funding policy the trust will hold.
Founding Trustee Resolution Drafting
Drafting the initial trustee resolutions formally adopting the trust rules and funding arrangement.
Handover to Income Tax Approval
Preparing the registered trust for the separate Income Tax approval application that follows registration.
Our Process
Structure & Funding Advisory
We advise on trustee composition and the intended funding arrangement (insurer-backed or self-managed) before drafting.
Trust Deed Drafting
The deed is drafted to meet Payment of Gratuity Act and Fourth Schedule requirements, anticipating likely future amendments.
Execution & Registration
The deed is executed by the settlor and trustees, then registered with the Sub-Registrar.
PAN & Bank Account
A trust PAN is applied for, and documentation is prepared to open the trust's dedicated bank account.
Funding Policy Setup
The trust enters into a group gratuity policy or equivalent funding arrangement, readying it for Income Tax approval.
Why It Matters
Frequently Asked Questions
Ready to set up your gratuity trust?
We'll draft the deed, handle registration and PAN, and get the funding policy in place — ready for Income Tax approval.
