Purpose of creating a Trust

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.

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