Amendments in Trust Deed

Dear Members,

We are an NGO registered in Trichy, Tamilnadu. The founder trustee resigned and as a result I (Dr.Uma) ‎became the managing trustee henceforth. The Supplementary Deed was registered in Trichy district Sub-Registrar ‎office. Pl. clarify the following.

  • Should I maintain an office in the place of registration (Trichy)
  • Should I inform to the Income officials about our supplementary deed
  • The trust has 12 a and 80 G validity.

Thanks and regards

Dr. Uma

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5 Responses to Amendments in Trust Deed

  1. ISSAC says:

    1. Change of Registered Office: In the state of Tamil Nadu, a public charitable trust is not a regulated entity. The registration of a trust deed is done under The Registration Act, which is generally applicable to certain classes of documents. There is no specific regulatory legislation which requires registration of the trust deed. The Deed of a public charitable trust is a self-governing document. Normally, the trust deed will have a clause empowering the trustee to change the registered office. If such a clause exists in the trust deed, the trustees are liberty to change the registered office to any location in India. This change in the registered office will have to be updated in the PAN database by filing the PAN correction form. The change of address also needs to updated in the profile page of your account with the income tax e-filing website. If the trust has a FCRA registration, the changes of address to be mandatorily intimated to the Ministry of Home Affairs by filing the FC6 form on the FCRA website. If the change of address also results in a change in the income tax jurisdiction which governs the trust, you have the option of applying for a change of jurisdiction to the officer of the new jurisdiction.
    2.Change of trustees: Normally, trust deeds will have a clause laying down the method of appointing/changing trustees. If a new trustee is appointed as per this clause, there is no mandatory requirement of registering the change. A resolution passed in a board meeting of the trustees suffices. The only benefit of registration is that there it can be used as evidence to prove the authenticity of the change. Specifically for the purposes of the Income Tax Act, a change in the trustee composition which is in accordance with the clause regulating changes/modifications will not be considered as an amendment to the trust deed. It is merely an exercise of the powers granted by the trust deed. Therefore, if the changes/modifications clause has been followed, there are no compliance requirements to be satisfied in relation to the income tax act. If the trust has a FCRA registration and the change/modifications results in a 50% change in the composition of the board of trustees, the changes have to be mandatorily intimated to MHA by filing the FC6 form on the FCRA website.
    3. Changes in the objects clause of the trust deed: Any changes in the objects clause will have to done as below:-
    a. Generally, the trust deed will have a clause empowering the trustees to modify the object of the trust deed. If no such powers have been granted to the trustees, the objects clause cannot be modified.
    b. Further, at the time of the 12A registration, the income tax department usually imposes the condition that any change in the objects clause has to executed only with the prior permission of the Commissioner of Income Tax. In such cases, the change will mandatorily require prior permission of Commissioner of Income Tax.
    c. If the mandatory prior permission is not obtained, or such permission is not a condition imposed during the 12A registration, an application for a fresh 12A registration has to be submitted within 30 days of the change in the objects clause. Non-compliance with this will result in the trust being liable to pay income tax on its income as well as its accumulated net worth.
    d. Major changes, i.e., changes that alter the fundamental character of the trust, cannot be executed as a charitable trust which possesses an income tax exemption is always an irrevocable trust.
    4. Other Changes: Any other changes to the trust deed have to be in compliance with the amendment clause of the trust deed and any conditions imposed by the 12A registration.

  2. Dear Sir,
    This is fine with the change of the Objects of the Society, We would like to know what would be the requirements, if we wants to change the name of the Society& Objects both What are the formalities with Society Registrar, Income-tax dept and Charity commissioner.

  3. Subhash Mittal says:

    1. Normally Registered Office has to be maintained within the State. In case there is a change from one district to another, normally concerned SDM / District office is informed who would shift the file to the SDM office where your new office is located. Transfer out of state is generally not allowed.
    2. Yes you should file the supplementary Deed with Income Tax office, however please note if the supplementary covers any changes in Objectives, then first Income Tax Dept’s approval needs to be taken,m before getting it registered with your SDM / District office.
    3. 12A & 80G validity generally would continue, however if there are changes in Objects clauses, Income Tax officials would re-examine the charity status of the entity.

  4. Udayashankar says:

    Dear Friends,

    We have to inform the IT Authorities, if there is a re-registered Trust deed /MOA.
    If already registered with FCRA, it is necessary to inform FCRA section of MHA.


  5. CA B G Kale says:

    You should inform the Income Tax Department within 30 days of changes in the trust deed

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