TRUST REGISTRATION

Trust compliances are the legal and tax rules a trust must follow every year. Failing to follow these rules can lead to heavy fines. The trust could also lose its tax-free status. 

Key Annual Rules

• Bookkeeping: The trust must keep clear records of all money coming in and going out.

• Audits: A Chartered Accountant (CA) must check the books if income is above the tax limit.

• Tax Returns: A trust must file its tax return each year using the right forms.

• Tax Deductions: The trust must file TDS returns if it pays salaries.

• Foreign Money: Any foreign donations must be reported to the home ministry. 

Why IT Matters

Keeping up with these rules keeps the trust in good standing with the law. It also makes donors feel safe giving money to your cause.