A Trust is a legal arrangement where a person (the “Author” or “Settlor”) transfers property or assets to be managed by “Trustees” for the benefit of specific individuals or the public. In India, trusts are commonly formed for charitable, religious, or educational purposes (public trusts) or for managing family assets and inheritance (private trusts). Public charitable trusts are governed primarily by state-specific Public Trusts Acts (or the Indian Trusts Act, 1882 for private trusts), and registration gives the trust legal standing to hold property, enter contracts, and, for charitable trusts, apply for income tax exemptions.

Types of Trusts:

• Private Trust: created for the benefit of specific individuals (e.g., family members), governed by the Indian Trusts Act, 1882.
• Public Charitable Trust: created for the benefit of the public at large (education, healthcare, poverty relief, religion), eligible to apply for 12A and 80G tax benefits (now governed by Sections 332 and 354 of the Income Tax Act, 2025) once registered.