Society and Trusts
A society registration can be done for the development of fine arts, science, or literature or else for diffusion of purposeful knowledge or charitable purposes of political education. According to section 20 of Society Act, 1860, a society registration can be done for following purposes:
Promotion of fine arts
– Diffusion of political education
– Grant of charitable assistance
– Promotion of science and literature
– Creation of military orphan funds
– Maintenance or foundation of galleries or public museum
– Maintenance or foundation of reading rooms or libraries
– Promotion or diffusion or instruction of useful knowledge
– Collections of natural history
– Collections of inventions, designs, or instruments
- Purchase a certain property without legal hassles: Registered Society encounters lesser compliances while vesting the property in its own name.
- File cases against the defaulters or in case of a dispute: The registered Society holds the right to enforce proceedings regarding legal affairs in the court.
- Avail tax exemption from income tax. The Society working under the act is eligible to file income tax return.
- Carry fewer liabilities.
- Shift the old property to another entity without engaging with daunting documentation or
- Protect the properties of the incorporated body against the opponent seeking ownership
of the same.
- Bypasses the provisions that discourage the opening of a bank account in its name.
- Accumulate funds from outside sources.
Documents required for a Society Registration.
Trust is an arrangement where the owner (trustor) transfers the property to someone else (trustee) for the benefit of a third person (beneficiary). Such a property is transferred by the trustor to the trustee along with a proclamation that the trustee should hold the property for the beneficiaries of the Trust.
Thus, Trusts can be classified into two categories:
Documents Required for Trust Registration
Difference Between Society and Trust
It is considered to be the oldest form of charitable organisations. It is, in essence, an arrangement between parties whereby one party holds ownership over property on behalf of another person
It is formed when a collection of people come together for a common charitable purpose. But it is not limited to charitable purposes but
A trust is established under and governed by the Indian Trust Act, 1882 for private trusts. General law is applied for public trusts except in
Societies Registration Act,1860.
Minimum members required
2 trustees minimum
7 members minimum (5 for Jammu and Kashmir and Telangana)
There are no mandatory yearly compliance to be met by a trust
The society must file the list of names, occupations, and address of the managing committee members
Dependent upon the state stamp duty Act as well as the total worth of the property involved in the matter.