SHORT ANSWER:
Charitable trusts in India are governed by the Indian Trusts Act, 1882 and must be registered under the relevant state laws.
DETAILS:
- Charitable trusts must have a clear purpose for charitable activities.
- They must be registered with the appropriate authority in the state.
- Trust deeds must specify the objectives, trustees, and the manner of administration.
- They are eligible for tax exemptions under Section 12A and 80G of the Income Tax Act, 1961.
PUNISHMENT / IMPLICATIONS (if applicable):
- Non-compliance with registration can lead to penalties and loss of tax benefits.
SOURCE:
- Indian Trusts Act, 1882; Income Tax Act, 1961
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