A registered trust must comply with legal and tax obligations including maintaining proper books of accounts, annual audit (if income exceeds limits), and filing of income tax returns. To claim tax exemptions, the trust should be registered under Section 12AB of the Income Tax Act, and donors can be offered tax benefits through 80G certification.
Conclusion
Compliance with tax and regulatory norms ensures the trust’s credibility, legal standing, and eligibility for tax exemptions and donor contributions, ultimately supporting its charitable objectives.