Definition of Trust

Creation of a trust, particularly relating to an immoveable property is also a species of transfer of

property. Trust is defined in section 3 of the Trust Act, 1882 as an obligation annexed to the
ownership of property and arising out of a confidence reposed in and accepted by the owner, or
declared and accepted by him, for the benefit of another or of another and the owner. In simple
words it is a transfer of property by the owner to another for the benefit of a third person along
with or without himself or a declaration by the owner, to hold the property not for himself and
another.

Requirements of a Trust
A trust is not a contract of agency to hold the property, as in that case there would be no transfer
of the property. In trust there is a transfer from the owner to the trustee subject to certain terms
and conditions. Bailment is also a kind of trust, but in bailment also there is no transfer of any
interest in the property, but only a transfer of possession without ownership. Thereof, a trust is
essentially a transfer of property by one to the other to be held by the other for the benefit of
some person or for carrying out some object. It is no also a sale because a sale cannot be
conditional and in sale there is consideration which is absent in a trust. The purpose of a trust
must be lawful, that is,
It should not be forbidden by law.
It should not be of such nature that, if permitted it could defeat the provisions of any law.
It should not be fraudulent.
It should not involve or imply injury to the person or property of another or
It should not be such as would be regarded by a court as immoral or opposed to the public policy.
Where a trust is created for two purposes one of which is lawful and the other is not and the two
purposes cannot be separated, the whole trust is void.

Creation of Trust
A trust of immoveable property can be created by two ways. One by a non-testamentary
document and another by a testamentary document such as a will. In other words, a trust
regarding a immoveable property cannot be created orally but it must be by a document duly
registered. A trust of a moveable property can be created either by a document or delivering the
property to the trustee with necessary oral directions. If the directions are given in writing it
would amount to a trust by a non-testamentary document which may or may not be registered.
A person who creates a trust is called the settlor, the person to whom the the property is
transferred on trust is called a trustee and the person for whose benefit the property is transferred
is called the beneficiary or cestuique trust .

Deed of Trust
A trust relating relating to an immoveable property is required to be created by a document and
such document must state and contain five essential things with reasonable certainty namely :
the intention on the part of the author of the trust or settlor to create a trust.
the purpose of the trust.
the beneficiary.
the trust property, and
transfer of the property to the trustee.

Declaration of Trust
A trust can also be created by the author himself declaring that he would hold the property, not as
owner, but as a trustee for the benefit of some person or persons including himself and in that
case the transfer of property is not necessary as one need not transfer his property but in such a
case the declaration of trust is by the owner and he alone should be the trustee. Such a
declaration would, however, require registration under the Registration Act.

Testamentary Trust
A trust can also be created by a testamentary document that is by Will and the same conditions as
mentioned in Section 6 of the Trust Act are required to be fulfilled. such a Will also does not
require registration
A trust is also created :
by application of employed trust or
as a constructive trust or
as derivative trust.
But they are created by fiction by of law and cannot be subject matter of conveyancing

Who can Create a Trust

A Trust can be created by any person competent to contract or even by a manner with the
authority of a competent court and respect of any property which is transferable and over which
the author of the trust has dispossessing power.

Trust, Private and Public

A Trust may be Private and Public.
When the purpose of the trust is to benefit an individual or a group of individuals or his or their
descendants for any legal person and who is capable of holding property, it is a private trust.

When the purpose of the trust is to the benefit the public or any section of the public, it is public
trust.

Who can be a trustee

A trustee can be any person that is, an individual or a corporate body or a corporate sole, capable
of holding property and competent to contract. and he must accept the trust.
**************9

Procedure trust Registration

I. Summary
A. TYPES OF ORGANIZATIONS
1. Trusts
Public charitable trusts can be established for a number of purposes, including the relief of
poverty, education, medical relief, provision of facilities for recreation, and any other object of
general public utility. Indian public trusts are generally irrevocable. No national law (except the
broad principles of the India Trusts Act 1882, which governs private trusts) governs public
charitable trusts in India, although many states (particularly Maharashtra, Gujarat, Rajasthan, and
Madhya Pradesh) have Public Trusts Acts.
2. Societies
Societies are membership organizations that may be registered for charitable purposes. Societies
are usually managed by a governing council or a managing committee. Societies are governed by
the Societies Registration Act, 1860, which has been adapted by various states. Unlike trusts,
societies may be dissolved.
3. Section 25 Companies
A section 25 company is a company with limited liability that may be formed for "promoting
commerce, art, science, religion, charity or any other useful object," provided that no profits, if
any, or other income derived through promoting the company's objects may be distributed in any
form to its members.
B. TAX LAWS
Indias tax laws affecting not-for-profit organizations (NPOs) are similar to the tax laws of other
Commonwealth nations.
The income of certain NPOs carrying out specific types of activities is exempt from corporate
income tax, with the caveat that unrelated business income is subject to tax under certain
circumstances.
India also subjects certain sales of goods and services to VAT, with a fairly broad range of
exempt activities. The rates range from 1 percent to 12.5 percent, with most goods and services
taxed at 12.5 percent. VAT liability arises only if the total turnover of sales is Indian Rupees (Rs.)
500,000 (Rs.100,000 if the dealer is an importer).

The income tax law and the corporate tax law provide tax benefits for donors. India and the
United States have signed a double taxation treaty.
Finally, NPOs involved in relief work and in the distribution of relief supplies to the needy are
100% exempt from Indian customs duty on the import of items such as food, medicine, clothing
and blankets. Other exemptions may also be available.
II. Applicable Laws

Constitution of India;

Income Tax Act, 1961;

Public Trusts Acts of various states;

Societies Registration Act, 1860;

Indian Companies Act, 1956, section 25;

Foreign Contribution (Regulation) Act, 1976;

Maharashtra Value Added Tax Act, 2002, as amended by Act No. IX of 2005.
Other legal authorities consulted in preparing this Note:
Noshir H. Dadrawala's "IRNL Country Report on the Framework Governing Not-for-Profit
Organizations in India"
Noshir H. Dadrawala's "Report on Indian Finance Bill 2006"
III. Relevant Legal Forms
A. GENERAL LEGAL FORMS
The right of all citizens to form associations or unions is guaranteed by the Constitution of India,
Article 19(1)(c).
There are three pertinent legal forms of not-for-profit entities under Indian law: trusts, societies,
and section 25 companies (cooperatives and trade unions are mutual benefit organizations, and as
such, are not discussed in this Note). Many state and central government agencies have
regulatory authority over these not-for-profit entities. For example, all not-for-profit
organizations are required to file annual tax returns and audited account statements with various
agencies. At the state level, these agencies include the Charity Commissioner (for trusts), the
Registrar of Societies (referred to in some states by different titles, including the Registrar of
Joint Stock Companies), and the Registrar of Companies (for section 25 companies). At the
national or federal level, the regulatory bodies include the income tax department and Ministry
of Home Affairs (only for not-for-profit organizations receiving foreign contributions).
1. Trusts
Public charitable trusts, as distinguished from private trusts, are designed to benefit members of
an uncertain and fluctuating class. In determining whether a trust is public or private, the key
question is whether the class to be benefited constitutes a substantial segment of the public.
There is no central law governing public charitable trusts, although most states have "Public
Trusts Acts." Typically, a public charitable trust must register with the office of the Charity
Commissioner having jurisdiction over the trust (generally the Charity Commissioner of the state
in which the trustees register the trust) in order to be eligible to apply for tax-exemption. In
general, trusts may register for one or more of the following purposes:

Relief of poverty or distress;


Education;

Medical relief;

Provision of facilities for recreation or other leisure-time occupation (including

assistance for such provision), if the facilities are provided in the interest of social welfare and
public benefit; and

The advancement of any other object of general public utility, excluding purposes which
relate exclusively to religious teaching or worship.
At least two trustees are required to register a public charitable trust. In general, Indian citizens
serve as trustees, although there is no specific prohibition against non-natural legal persons or
foreigners serving in this capacity.
Legal title of the property of a public charitable trust vests in the trustees. Trustees of a public
charitable trust may not, however, in any way use trust property or their position for their own
interest or private advantage. Trustees may not enter into agreements in which they may have a
personal interest that conflicts or may possibly conflict with the interests of the beneficiaries of
the trust (whose interests the trustees are bound to protect). Trustees may not delegate any of
their duties, functions or powers to a co-trustee or any other person, except that trustees may
delegate ministerial acts. In essence, trustees may not delegate authority with respect to duties
requiring the exercise of discretion.
Trustees of religious or charitable trusts are charged with discharging their duties with the degree
of care that an ordinarily prudent person would exercise with respect to his personal property.
Public charitable trusts are highly regulated. For instance, in many states, purchases or sales of
immovable property by a trust or taking a loan must be approved in advance by the Charity
Commissioner.
Indian public charitable trusts are generally irrevocable. If a trust becomes inactive due to the
negligence of its trustees, the Charity Commissioner may take steps to revive the trust.
Furthermore, if it becomes too difficult to carry out the objects of a trust, the doctrine of cy pres,
meaning "as near as possible," may be applied to change the objects of the trust.
*****************************9

Formation and Registration of a Non -Profit organisations in India

1) Trust
2) Society
3) Section-25 Company
Additional Licensing/ Registration
I. Trusts
A public charitable trust is usually floated when there is property involved, especially in terms of
land and building.
Legislation : Different states in India have different Trusts Acts in force, which govern the trusts
in the state; in the absence of a Trusts Act in any particular state or territory the general principles

of the Indian Trusts Act 1882 are applied.

Main Instrument : The main instrument of any public charitable trust is the trust deed, wherein
the aims and objects and mode of management (of the trust) should be enshrined. In every trust
deed, the minimum and maximum number of trustees has to be specified. The trust deed should
clearly spell out the aims and objects of the trust, how the trust should be managed, how other
trustees may be appointed or removed, etc. The trust deed should be signed by both the settlor/s
and trustee/s in the presence of two witnesses. The trust deed should be executed on non-judicial
stamp paper, the value of which would depend on the valuation of the trust property.
Trustees : A trust needs a minimum of two trustees; there is no upper limit to the number of
trustees. The Board of Management comprises the trustees.
Application for Registration :
The application for registration should be made to the official having jurisdiction over the region
in which the trust is sought to be registered.
After providing details (in the form) regarding designation by which the public trust shall be
known, names of trustees, mode of succession, etc., the applicant has to affix a court fee stamp of
Rs.2/- to the form and pay a very nominal registration fee which may range from Rs.3/- to
Rs.25/-, depending on the value of the trust property.
The application form should be signed by the applicant before the regional officer or
superintendent of the regional office of the charity commissioner or a notary. The application
form should be submitted, together with a copy of the trust deed.
Two other documents which should be submitted at the time of making an application for
registration are affidavit and consent letter.
Model of Trust deed available on this link :
http://www.karmayog.org/startanngo/startanngo_11419.htm
Model of Forms to be filled for Registration of a Public Trust are given below :
Form of Application for Registration of a Public Trust
Schedule II (Vide Rule 6)

Court Fee Stamp

of Rs. 2/-

To
The Deputy/Assistant Charity Commissioner,
............................................................................ Region/Sub-Region
In the matter of Public Trust* ..............................................................
.......................................................................................................

I ............................................. trustee of the above named public trust, hereby apply under section 18 of the Bombay
Public Trust Act, 1950 for the Registration of the said public trust.
2 I submit the following necessary particulars:

.
(ai) The designation by which the public trust is or shall be
known.
(Name of the Public Trust)
(i)

Names of the trustees and managers with their addresses

(ii)

Mode of succession to the trusteeship and managership

(iii) Objects of the trust :

(iv) (a) Particulars of documents creating the trust
(attach copies)
(b) Particulars other than documents about the origin or
creation of the trust.
(v)

Particulars of the scheme, if any, relating to the trust

(attach copy).

(vi) Movable property with estimated value of each class

of such property.
(Note: Entries should be made by board description
of classes of such property, e.g., furniture, books, etc.,
rather than of each individual article. Entry regarding
cash should be made only if such cash forms part of
the capital of the trust. In the case of scripts give
particulars of each security, stock, share and debenture
including the number which it bears).
(vii) (a) Details of immovable properties showing the
village or town where situate, along with C. S.,
Municipal or Survey No., area, assessment or Judi
and description of the tenure on which held (attach
certified copies of the entries in the Record of Rights,
city survey record or municipal record relating to
the properties).

1.

(b) Estimated value of each immovable property:

1.

2.
3.

2.
3.
(viii) Sources of income of the trust.
(ix) Average gross annual income:

1. From Movable:
2. From
Immovable:

(x)

Average annual expenditure

(xi) Amount of average annual expenditure:

(a) on remuneration to trustees and manager

..

(b) on establishment and staff

..

(c) on religious objects

..

(d) on charitable objects

..

(e) on miscellaneous items

..

(xii) Particulars of encumbrances, if any on trust Property

(xiii) Particulars of title deeds pertaining to trust
property and the names of trustees in possession thereof
(xiv Remarks, if any
)
3
. Fees of Rs............................../- (...............................................) accompanies
4
. Any communication to the trustee or manager in connection with the trust, may be sent to the following
address :
Name .......................................................
Address ....................................................
...............................................................
Date .................

Signature of Applicant.................

I, the above named ............................................. inhabitant residing at ......................................... do solemnly affirm

and say that what is stated in the above application is true to the best of my information and belief.
Solemnly affirmed at .................................. ]
aforesaid this ................... day of .............. ]
Signature ................................
200...

]
Before

me.

* Give full name and address of the trust.

* If the Wakf or Trust is registered under the old Acts, no fees under 3 are payable.

CONSENT LETTER
To
Deputy Charity Commissioner/Assistant Charity Commissioner
.............................. Region
Sir,
Shri ..............................................................................................................................................
(Name of Applicant)
For Charitable Institution/Association/Trust ........................................................................... have applied for

registration under B.P.T. Act, 1950, on .................................... The information provided in the application are true,
we have not to say anything more than that. We state that a separate notice for the details of the said application is no
more necessary. We have no objection for the issue of Registration Certificate in the name of applicant. Please note
that.
Name of other trustees
(including the applicant)
Signature
....................

.................

....................

....................

....................

....................

....................

....................

....................

....................

....................

....................

....................

....................

1.

2.

3.

4.

5.

6.

7.

I know all the above said signatories.

(Applicant Sign.)

Date :

Source : http://www.ngosindia.com/resources/ngo_registration1.php/CAF India

***************************9

What is Trust Deed ?

The instrument by which the trust is declared is called instrument of Trust, and is generally
known as Trust Deed.
It is well settled that no formal document is necessary to create a Trust as held in Radha Soami
Satsung vs. CIT- (1992) 193 ITR 321 (SC). But for many practical purposes a written instrument
becomes necessary under following cases
1. When the trust is created by a will irrespective of whether the trust is public or private or it
relates to movable or immovable property. This is because as per Indian Succession Act, a will
has to be in writing
2. When the trust is created in relation to an immovable property of the value of Rs.100 and
upwards, in case of a private trust. In case of public trusts, a written trust deed is not mandatory,
even in respect of immovable property, but is optional.
3. Where the trust/association is being formed as a society or company, the instrument of trust;
i.e., the memorandum of association, and Rules and Regulations has to be in writing.
A written trust-deed is always desirable, even if not required statutorily, due to following benefits
:
d. a written trust deed is a prima facie evidence of existence of a trust ;
e. it facilitates devolution of trust property to the trust;
f. it clearly specifies the trust-objectives which enables one to ascertain whether the trust is
charitable or otherwise;
g. it is essential for registration of conveyance of immovable property in name of the Trust;
h. it is essential for obtaining registration under the Income-tax Act and claiming exemption from
tax;
i. it helps to control, regulate and manage the working and operations of the trust;
j. it lays down the procedure for appointment and removal of the trustee(s), his/their powers,
rights and duties; and
k. it prescribes the course of action to be followed under any eventuality including dissolution of
the trust.
2. Types of Instrument of Trust
0. Trust deed, where a trust is declared intervivos; i.e., by settling property under Trust.
1. A will, where a trust is declared under a will;
2. A memorandum of association along with rules and regulations, when the
association/institution is being formed as a society under the Societies Registration Act, 1860.
3. A memorandum and articles of association where the association /institution is desired to be
formed as a Company.
3. Trust Deed-Clauses

A person drafting the deed of a public charitable trust has to bear in mind several enactments,
particularly the Indian Trusts Act, any local enactment relating to trusts, like the Bombay Public
Trusts Act for the State of Maharashtra and the Income tax Act. Such a person has also to keep in
mind the relevant judicial pronouncements dealing with the scope of "charitable purpose" and
accordingly decide whether a particular purpose is charitable or not. An instrument of Trust
or association/institution created or established should contain inter alia the following clauses:
0. Nothing contained in this deed shall be deemed to authorise the trustees to do any act which
may in any way be construed as statutory modifications thereof and all activities of the trust shall
be carried out with a view to benefit the public at large, without any profit motive and in
accordance with the provisions of the Income-tax Act, 1961 or any statutory modification
thereof.
1. The trust is hereby expressly declared to be a public charitable trust and all the provisions of
this deed are to be construed accordingly.
The Trust Deed, generally contains the following clauses :
2. Preamble
3. Trust name by which Trust shall be known
4. Place were its office shall be situated
5. Author or settlor of the trust
6. Names of the Trustees
7. Beneficiaries
8. The property settled, for Trust In case of immovable property, it should contain full
description of the property sufficient to identify it
9. An express intention to direct the trust property from the trustees
10. The objects of the Trust
11. Minimum and maximum number of Trustees
12. The procedure for appointment, removal, replacement of trustees
13. Trustees rights, duties and powers
14. Administration of trust
15. Provision for maintenance of accounts, auditing etc.
16. Clause enabling, spending and utilization of the Trust funds or corpus.
17. Bank Account operations
18. Borrowing money on security for the purpose of the Trust
19. Investment of the Trust funds and dealing with Trust properties
20. Alienation of immovable property of the Trust
21. Amalgamation clause
22. Dissolution of Trust
23. Irrevocable nature of the trust.
MODEL TRUST DEED OF A PUBLIC CHARITABLE TRUST

THIS DEED OF TRUST executed on this _______________________ day of

__________________ year 20____, _______________________ BETWEEN
__________________________________________ (Party of the first part) hereinafter called "
SETTLOR OF THE TRUST"
________________________________________________________
________________________________________ AND
_____________________________________ .
1. SHRI.

S/O. SHRI

, of ____________ &

2. SHRI.

S/O. SHRI.

, of ____________ &

3. SMT.

W/O SHRI.

, of ____________

(Hereinafter called " The Trustees" which expression shall unless repugnant to the context or
meaning thereof be deemed to include the survivors or survivor of them and the trustees or
trustee for the time being of these presents and their heirs, executors and administrators of the
last surviving trustee, their or his assignees) of the other part;
WHEREAS the party hereto of the first part is possessed of the sum of Rs. ___________/- (Rs.
__________ Only) as his absolute property and he is desirous of creating a Religious/
Charitable/Educational Trust for the benefit of the humanity at large.
AND WHEREAS each of the parties hereto of the "Other Part" has individually and jointly has
agreed to act as Trustees of the Trust, proposed by the party of the first part.
AND WHEREAS nothing contained in this deed shall be deemed to authorize the trustees to do
any act which may in any way be construed statutory modifications thereof and all activities of
the trust shall be carried out with a view to benefit the public at large, without any profit motive
and in accordance with the provisions of the Income-tax Act, 1961 or any statutory modification
thereof.
AND WHEREAS the trust is hereby expressly declared to be a public charitable trust and all the
provisions of this deed are to be constituted accordingly.
NOW THIS INDENTURE WITNESSTH AS FOLLOWS :

1.

SETTLEMENT
The party of the first part, the settlor, does hereby settle the sum of Rs._______ /- (Rs.
__________ only) in Trust, with the name and for the objects hereinafter stated, by
delivering the said amount in cash which the party of the other part, the Tustees, have
accepted the receipt of which they do hereby acknowledge, to hold the same in and to the

Trustees with the powers and obligations as provided hereinafter.

2. NAME
The name of the Trust shall be "____________________________".

3. PLACE
The principal office of the Trust shall be situated at ______________________ or
such other place as the Trustees may from time to time decide. The Trust may also
carry on its work at any other place or places, as decided by the Trustees.

4. OBJECTS
a. Educational to run, maintain or assist any educational or other institution
for coaching, guidance, conselling or vocational training or to grant individual
scholarships for poor, deserving and needy students for elementary and
higher education.

b. Medical to run, maintain or assist any medical institution, nursing home or

clinics or to grant assistance to needy and indigent persons for meeting the
cost of medical treatment.

c. Relief of the poor to give financial or other assistance in kind by way of

distribution of books, notebooks, cloths, uniforms, or meals for the poor and
indigent and to the persons suffer due to natural calamities.

d. Other objects of general public utility

i.

to acquire property for the sole use for public good by making
it available for public purposes as for example, housing a library clinic, crche and/or as a
community ball to be available for public use as training classes, seminars, discourses
and other public functions for benefit of the community in general.

ii.
to undertake any other activity incidental to the
above activities but which are not inconsistent with the above objects.
PROVIDED the Trust may assist/donate the other TRUST to carry out the various
objects mentioned in the objects clause in such manner and to the extent the
Trustees may decide upon from time to time.

5. FUNDS
The Trustees may accept donations, grants, subscriptions, aids or contributions from

any person, Government, Local authorities or any other charitable institutions, in

cash or in kind including immovable property without any incumbrance, but the
Trustees shall not accept any receipt with any condition or terms inconsistent with
the objects of the Trusts. While applying such receipts to the objects, the Trustees
shall respect the directions, if any, by the granter. Any receipt with specific direction
to treat the same as part of the corpus of the Trust or separate fund shall be funded
accordingly.

6. INVESTMENTS
i.

All monies, which shall not immediately required for current

needs shall be invested by the Trustees in eligible securities and investments,
or in banks. Such investments shall be in the name of Trust or Trustees.

ii.
That the trustees shall invest the trust fund, carry on any
business with the trust fund and/or enter into partnership on behalf of the
trust, as they may deem fit.
iii.

That the trustees shall manage the trust fund and investments
thereof as a prudent man would do the same. They shall recover all
outstandings and meet all recurring and other expenses incurred in the
upkeep or management thereof.

iv.

That the trustees shall receive and hold the income of the trust
on behalf and for the benefit of the beneficiaries under the trust.

7.

POWER OF TRUSTEES
That the trustees shall have the following powers :

to manage all the assets and/or properties of the trust including

the conduct of business;

i.

to appoint employees and to settle the terms of their service,

remuneration and termination;

ii.

to look into the management of the trust;

iii.
to invest the funds of the trust, in bank or in the purchase of
company shares or securities or other movable and movable and immovable
properties;

iv.

to sell, alter, vary, transpose or otherwise dispose or alienate the

trust properties or any investment representing the same for consideration
and to reinvest the same;

v.

to pledge or mortgage the trust properties for raising loans;

vi.

to open the bank accounts in the name and on behalf of the trust
and to operate the same;

vii.

To enter into a partnership on behalf of the trust with any other

party or parties;

viii.

To pay all charges, impositions and other outgoings payable in

respect of the trust properties and also to pay all cost of the incidental to the
administration and management of the trust properties;

ix.
To file suit on behalf of the trust and to refer to arbitration all
actions proceedings and disputes touching the trust properties and to
compromise and compound the suits filed;
x.

To accept any gift, donation or contribution in cash or in kind

from anyone for the objects of the trust;

xi.

To seek legal opinion of lawyers and/or Chartered Accountants as

and when required;

xii.

To nominate their representatives for any of the aforesaid

purposes.

8.

The number of the trustees shall not be less than two but not more than five.

9.

In case of any difference between the trustees, the opinion of the minority shall
prevail.

10. Every trustee will be at liberty to nominate or appoint attorneys or agents and to
delegate all or any of the duties and powers vested in him to such attorney or agent,
and to remove such attorney or agent and reappoint other or others in his place.

11. No trustee shall be responsible or liable for any loss or any act of omission or
commission by his constituted attorney or agent or employees or other trustees

unless occasioned by his wilful neglect or default.

12. Any of the trustees may retire on giving one months notice in writing to the other
trustee(s).

13. If any trustee dies or retires or becomes incapable or unfit to act, the continuing or
surviving trustee or trustees shall appoint a successor in the place of such trustee.

14. If at any time the number of the trustees is less than two, the existing trustee shall
appoint one or more trustees.

15. Upon the appointment of a new trustee the trust properties shall vest in the new
trustee jointly with the continuing or surviving trustees, with the duties and power of
the trustees set out hereinabove in this deed.

16. If the trust is determined by efflux of time, the corpus of the trust shall be divided
amongst the beneficiaries in the shares as fixed by the trusees.

17. BANKING ACCOUNT

All income, subscription and pecuniary donations for the general purposes of the
Trust and the income, investments and all other moneys from time to time forming
part of the general revenue of the Trust shall on the same being received be paid into
a banking account with any scheduled bank for the purpose of the Trust. The bank
accounts shall be operated by the Managing Trustee along with any one of the
remaining Trustees.

18. ACCOUNTS AND AUDIT

.
The Trustee shall keep proper books of account of all the assets,
liabilities and income and expenditure of the Trust and shall prepare an
Income and Expenditure Account and Balance Sheet for every year as on the
last day of March.
i.
The accounts of every year shall be audited by a Chartered
Accountant or a firm of Chartered Accountants who shall be appointed for that
purpose by the Trustees and the audited accounts shall be placed at a
meeting of the Trustees, which shall be held before the end of the succeeding

year.

19. IRREVOCABLE
This Trust is irrevocable.

20. AMALGAMATION
The trustees may amalgamate the trust with another Charitable Trust or Institution
having similar objects with prior permission of the Charity Commissioner/Court/any
other law as may be applicable for the time being.

21. WINDING UP
In the event of dissolution or winding up of the Trust the assets remaining as on the
date of dissolution shall under no circumstances be distributed amongst the Trustees
but the same shall be transferred to some other similar Trust/Organisation whose
objects are similar to those of this Trust with the permission of the Charity
Commissioner / Court / any other law as may be applicable for the time being.

The Trustees shall be indemnified against all losses and liabilities incurred by them in the
execution of the Trust and shall have a lien over the funds and properties of the Trust for such
indemnity.
IN WITNESS WHEREOF, The Parties hereunto have signed and delivered the presents on the
day and year first hereinabove written.
SETTLOR
WITNESS :

1. TRUSTEE ____________

1.

2. TRUSTEE ____________

2.

3. TRUSTEE ____________

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