Trust Registration in India: Types, Process and Tax Registrations

What a trust is, how to register one, and which tax approvals a charitable trust should consider.

GOURAV CHOUDHARY1 Nov 2026

A trust is an arrangement where the owner (the settlor) transfers property to trustees to hold for the benefit of others. Trusts in India are used for family wealth planning and for charitable, educational and religious work.

Types of trusts

Private trust: created for the benefit of specific persons, such as family members.
Public or charitable trust: created for the public, for purposes such as education, relief of the poor, medical relief or advancement of other objects of general public utility.

Who is involved

Settlor or author: the person creating the trust and contributing the initial property.
Trustees: usually at least two, who manage the trust property.
Beneficiaries: the persons or the public who benefit.

Documents needed

A trust deed stating the name, objects, trustees, powers, and rules on meetings, accounts and dissolution.
PAN and address proof of the settlor and trustees, with photographs.
Proof of the trust’s address.
Two witnesses, where required.

Registration process

Choose a name and objects, and draft the trust deed.
Print the deed on non-judicial stamp paper of the value required in your state, and have it signed by the settlor and trustees.
Present the deed for registration before the Sub-Registrar of the area. Registration of a deed is mandatory where immovable property is involved.
Public charitable trusts may also need to register with the state’s charity commissioner or equivalent authority, depending on state law. Rules differ by state.
Apply for PAN and open a bank account in the trust’s name.

Tax approvals for charitable trusts

To claim income-tax exemption, a charitable or religious trust applies for registration with the Income Tax Department, commonly known as 12A/12AB registration under the earlier Act. Donors may claim a deduction for donations to trusts holding approval under the section commonly known as 80G. With the Income-tax Act, 2025 effective from 1 April 2026, section numbers and form numbers have been reorganised, so check the current provisions on the Income Tax portal before applying. Registered trusts must also maintain accounts, file annual returns and follow rules on application of income.

Common mistakes

Vague or overly narrow objects clauses.
Paying the wrong stamp duty for the state.
Not maintaining books and annual filings.
Mixing personal and trust funds.

Frequently asked questions

How many trustees are needed?

The law does not fix a number for private trusts, but at least two trustees is the common practice for public charitable trusts.

Is a trust deed registration compulsory?

It is mandatory where immovable property is settled, and strongly advisable otherwise because it gives the trust formal proof of existence.

Does a trust need a PAN?

Yes. A trust is a separate taxable entity and needs its own PAN.

Are donations to every trust tax deductible?

No. Donors get a deduction only where the trust holds the required tax approval.

This article is for general information only and is not professional advice. Rules, fees and forms change and vary by state, so confirm the latest position with the official portal or a qualified professional before acting.