Purpose of creating a Trust
Trusts are generally formed or created to fulfil any or more of the following objectives:
- For discharge of the charitable and/or religious sentiments of the author of settlor of the trust, in a way that ensures public benefit;
- For claiming exemption from Income tax U/s 10 or 11, as the case may be, in respect of incomes applied to charitable or religious purposes;
- For the welfare of the members of the family and/or other relatives, who are dependent on the settlor of the trust;
- For the proper management and preservation of a property;
- For regulating the affairs of a provident fund, superannuation fund or gratuity fund or any other fund constituted by a person for the welfare of its employees.