There are two main types of trusts in India: Public Trusts and Private Trusts. The registration process may vary slightly depending on the type of trust being established.

A trust can be formed by any person competent to contract, including individuals, Hindu Undivided Families (HUF), Associations of Persons (AOP), and more. In the case of an underage person, the consent of a civil court is required.

The primary purpose of creating a trust is to ensure legal protection for the trustor's assets and ensure their lawful distribution among beneficiaries. Trusts also help minimize inheritance or estate taxes.

Key documents include:

• Trust Deed
• Identification Proof (Aadhaar Card, Passport, Voter ID)
• Photographs of all involved parties
• Aadhaar Cards for each party involved in the trust.

A trustee has the authority to sell trust property, but it must be done through a public auction, not a private contract.

To register a trust under Section 12A, an application must be submitted in Form 10A through the Income Tax Department's portal.

While Trusts provide better privacy and are suitable for managing property, Societies offer a more democratic setup with elected members and are ideal for larger, membership-based organizations.

In some states like Maharashtra and Gujarat, societies must also register as trusts under the Bombay Public Trusts Act, 1950.

While NGOs can be trusts, societies, or Section 8 companies, Trusts are more focused on property management and charitable purposes, offering more privacy and flexibility in governance.

Yes, all registered trusts must e-file their Income Tax returns. If the trust undergoes an audit, the return must be filed with the Digital Signature of the certified CA responsible for the audit.