Deed of Trust

 

DEED OF TRUST

  This DEED OF DECLARATION OF TRUST   executed on DD-MMM-YYYY at Bangalore by < Name of the Author>

this

he here reina inaft fter ertheca calle lled d as so   which expres expression sion shall AUTHOR AUT HORmean OF THE TR TRUST USTits wherever context permits and include successors –in-office of the ONE PART and;    WHEREAS  the AUTHOR OF THE TRUST  decided to create and establish a Trust to of the community at large with the objects and constitution as hereinafter set forth;    WHEREAS the said objects in view, the AUTHOR OF TRUST  have decided to endow the said TRUST a nucleus of Rs.  XXX/- (Rupees only) in cash; and   WHEREAS it is necessary and desirable to declare and constitute the said Trust and to record the objects and constitution of the said Trust. NOW TH NOW THIS IS DE DEED ED OF DE DECL CLAR ARTI TION ON OF TR TRUS UST T WI WITN TNES ESSE SETH TH AS FOLLOWS;   1. TRUSTEES  mean and include the Board of Trustees as described in these presents, and these Trustees, as appointed, nominated or selected by th thee re remai maini ning ng me memb mber erss of the the Bo Boar ard d of Trus Trustt wh when enev ever er an any y vacancy arises. 2. CR CREA EATI TION ON OF TH THE ET TRU RUST ST::

  In pursuance of the intention, the AUTHOR OF TRUST has settled the sum of Rs. XXX by cash into and in favour of the Trustees herein to be held by them for and on behalf of the Trust hereby created and known as “NAME OF THE BANK”   the receipt of which sum of Rs. XXX/which wh ich ha hass alr alrea eady dy be been en han hande ded d ov over er to th thee Trus Truste tees es me ment ntion ioned ed hereun her eunde der, r, is her hereby eby ack acknow nowled ledged ged by the Tru Truste stees, es, who her hereby eby accept the appointme appointment nt as such Truste Trustees es of the said Trus Trust, t, under the terms ter ms and con condit dition ions, s, se sett out hereu hereunde nderr for the fulfil fulfillme lment nt of the objects of the Trust, more fully and particularly described and set out hereunder.

 

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3. REG REGIST ISTERE ERED D OF OFFIC FICE E OF THE TRU TRUST: ST:  

The registered office of the Trust is i s situated at present at   4. TRUSTEES:

The has appoin appointed ted the following persons AUTHOR TRUST to hold the officeOF of THE the Trust as Trustees: 

 ________ s/o _______, ______ _, residing at ______________ 

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 ________ s/o _______, ______ _, residing at ______________ 

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 ________ s/o _______, ______ _, residing at ______________ 

Of the above trustee’s the following shall be identified as Managing Trus Truste tee’ e’s, s, Join Jointt Ma Mana nagi ging ng Tr Trus uste teee and De Depu puty ty Ma Mana nagin ging g Trus Truste teee respectively in order to take care of the day to day activities of the trust:   

XXXXX as the – PRESIDENT YYYYY as the – VICE- P PRESIDENT RESIDENT ZZZZZ as the – TREASURER

5. MO MOTT TTO OO OF FT THE HE TR TRUS UST: T:

6. OB OBJE JECT CTS SO OF FT THE HE TR TRUS UST: T:

The Purpose/object of the trust is charitable, educational in nature. The main objects of the Trust are: 

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Other objects of general public utility –

 

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To undertake any other activity incidental to the above but which are not inconsistent with the above main objects. PROVIDED THAT the trust may assist/donate to any other trust to carry out the various objects mentioned in the objects clause in such manner and to such exte extent nt the trus trustees tees may decide upon from time to time. The TR The TRUS UST T ha hass been been cr crea eate ted d fo forr ch char arit itab able le pu purp rpos osee wi with thin in th thee meaning of the Income Tax Act 1961, and the objects of the trust are to affor aff ord d re relie lieff of po poor or,, ad advan vance ceme ment nt an and d en enco cour urag agem emen entt of Indi Indian an culture cult ure and ed educa ucatio tional nal acti activiti vities. es. The obj object ect of the trust will not include objects involving the carrying on of any activity for profit within the meaning of the Income tax act, 1961.

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Clauses for ensuring exemption under sections 11 and 12 to the trust and enabling deduction under section 80G to the donors to the trust

AND AN D IT IS HE HERE REBY BY DE DECL CLAR ARED ED th that at th thee relie relieff to be grant granted ed as hereinabove mentioned shall not be limited or restricted to persons of any particular caste or creed or religi religion. on. So far as it is not inconsis inconsistent tent with the object herein mentioned – (i) the in income come as also tthe he cor corpus pus o off the trust fund sshall hall be applie applied d and he applicable only to or for such public charitable purposes only and within such territories only and subject to such conditions or limitations if any, as may from time to time be laid down in the Income Tax Act, 1961 or any other Act governing tax on of income as well insure or make the Trust hereby established and its income as eligible for exemp exemption tion from taxation under the Incom Incomee Tax Act, 1961 or any reenactment thereof or modification thereof or under any other Act governing taxation for the time being in force in India; (ii) The Trus Trustt hereb hereby y establi established shed shal shalll be one to which the p provisi rovisions ons of section 80G of the Income tax act, 1961 or any replacement, reenactment or modification thereof for the time being in force may apply so that any donation made thereto may be recognized as eligible for exemption or relief from tax in the hands of the donor” 7. BE BENE NEFI FIT TO OF FT THE HE TR TRUS UST: T:

 

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The Trust Trust is establis established hed for the bene benefit fit for the human humanity ity at large and the cla class of people mentioned above wit ith hout any kind ind of discrimination of caste, religion, creed or sex. 8. TH THE E PR PROP OPER ERTI TIES ES O OF F TH THE E TR TRUS UST T

The Trust properties shall consist of 

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The am The amou ount nt Tr Tran ansf sfer erre red d by the the AUT AUTHO HOR R OF THE THE TRUS TRUST T  as mentioned above, towards the Corpus Fund of the Trust. Any cash or kind, properties, movable and immovable that may be acquired by purchase or otherwise or all manner of rights, title or interest in or over any property movable or immovable. All additions and accretions to the Trust properties and the income there from. All donations, gifts, legacies or grants, in cash or kind accepted by the Trustees upon Trust. The properties of the Trust shall be utilized for the objects set forth herein above and subject to the provisions and conditions herein mentioned.

9. PO POWE WER RO OF FT THE HE T TRU RUST STEE EES; S;

The Board of Trustees shall have the control and management of the Trust and exercise the following powers: a) To de dete term rmin inee fr from om tim timee to time time to comm commen ence ce and to tak takee up th thee object and purposes for which the funds of the trust shall be used and allot and allocate to each of the objects such portion of the b) c) d) e) f)

funds as they deem fit; To pur purchas chasee and acqui acquire re any immo immovabl vablee prop proper erty ty of any kind for this object of the Trust or as a source of income for the Trust; To sell, mortgage, or dispose of a ny immovable property/propertiess belonging to the Trust; property/propertie To incur all expe expendi nditur turee neces necessar sary y as in the their ir own opinio opinion n usefu usefull for carrying out the objects and administration of the trust; To sell sell,, leas lease, e, mort mortgag gagee or disp dispos osee of an any y prop proper erty ty,, imm immov ovab able le property/propertiess belonging to the Trust’ property/propertie To op open en on onee or mor moree ban bank k acco accoun unts ts of th thee tru trust st wi with th any ba bank nk or banks as the Trustees may deem fit and deposit monies of the Trust in the Bank accounts.

 

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g) To bor borrow row for an and d on beha behalf lf of the Trus Trustt with or with without out se secur curity ity from banks, Governments, Universities or any other government Body/bodies both central and state; h) To empl employ oy staf stafff of all kinds ne neces cessar sary y and usefu usefull for car carryi rying ng out the objects of the trust. i) To incu incurr such such othe otherr ite items of exp xpen end dit itur uree as is ne nece cesssa sary ry an and d incidental forconduct, carrying defend, out tthe he compound, objects of thewithdraw, Trust;  j) To institute, compromise, adjust, refer to arbitration or to do such things as are incidental and necessary, concerning the affairs of the Trust and to sign and verify vakalats, pleadings, affidavits and other powers’ k) To del delega egate te all or any of the powers powers ves vested ted in the Tr Trust ustee eess to any body’ to frame rules, bylaws and other codes for the conduct of the affair aff airss of the the Trus Trustt an and d its its trans transact actio ions ns an and d esta establi blish shing ing an any y Committee; l) To acc accep eptt cont contrib ributi utions ons in ca cash sh or in ki kind nd eit either her by w way ay of add additio ition n to the trust funds generally or for any one or more of the specified objects of the Trust. m) To establish as many adhoc committe committees es for any purpose. n) To exe execut cutee power of atto attorne rney y or pow powers ers of atto attorne rney y to any per person son for the purpose of executing, administering or managing the whole or any part of the Trust for the purpose of all or some among the objects of the Trust o) To rece receive ive volunt voluntary ary contr contributio ibutions ns from any p perso erson n or pers persons, ons, any organization, association, trust and NGO from India or outside, after complying with the statutory formalities, by way of donation, gifts or in any other manner and to hold the same upon Trust for the objects set forth herein. p) The Trus Trustee teess sha shall ll selec selectt fro from m amo among ng the themse mselve lvess Pre Preside sident, nt, VicePresident Presid ent,, and Tre Treasu asurer rer.. No Tru Truste steee inc includ luding ing the Man Managin aging g Trustee shall hold more than one post of above offices at the same ti time me.. Th Thee pe pers rson onss ho hold ldin ing g thes theses es of offi fice cess of Pres Presid iden ent, t, Vice Vice-Pr Pres esid iden ent, t, an and d Tr Trea easu sure rerr sh shal alll be un unde derr th thee ad admi mini nist stra rati tive ve guidance and supervision of the Board of Trustees and will report through the Managing Trustees. 10. ROLES AND RE RESPONSIBILITI SPONSIBILITIES ES AND POW POWERS ERS

The Roles, Responsibilities and Powers of all these office bearers are defined below. In addition to these, the Board of Trustee may grant additional roles, responsibilities and powers to any of the Trustees as and when required.

 

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a) MANA addi diti tion on to disc discha harg rging ing no norm rmal al MANAGING GING TRUS TRUSTEES TEES::  In ad

duties of a trustee, the Managing Trustee will be authorized to sign all documents, including bank documents, acknowledgements for th thee co cont ntri ribu buti tion onss re rece ceive ived, d, an and d ag agre reem emen ents ts wit with h indi individ vidua uals ls,, government institutions and other organizations on behalf of the Board of Trustees upon the decision of the for each and everys case. Any docum document ent signed unilaterall unilaterally y byBoard the Managing Trustee Trustees will stand null and void. The Managing Trustees are authorized to sign sign alon along g wit with h the the Tr Trea easu sure rerr ban bank k che chequ ques es,, de depo posi sitt rele releas asee vouc vo uche hers rs et etc. c. Th Thee Ma Manag nagin ing g Tr Trus uste teee alon along g wi with th th thee Bo Boar ard d of trustees is responsible for ensuring that the Trust pursues its objects and for maintaining the dignity of the Trust organization and shall use his/her influence to promote the activities activ ities of the Trust. b) VICE PRESIDENT: The Vice President shall discharge the duties

of the Managing Trustee, in the absence of the Managing Trustee of the Trust and shall have the power and authority delegated and assigned to him/her by the Managing Trustee. He shall maintain the records of the organization prepare and circulate agenda and minutes of Board of Trustees meeting. He shall be also responsible for the day to day administration activities of the Trust. He shall deal with correspondence received by the Trust, send replies in consultation with other Managing Trustees/President and/or the Treasu Tre asurer rer whe where re nec necess essary ary.. He/ He/she she is res respon ponsib sible le for the saf safee custody of all the assets a ssets and records of the Trust. He shall represent the Trust in all legal matters, sign the papers related to legal cases, attend to courts or represent the Trust in Government offices. c)

TREASURER: The Treasurer will prepare Annual Budget, monthly and yearly expenditure statements get the expenditure audited by auditor duly appointed by the Board of Trustees and place them be befor foree the the Bo Boar ard d of Trus Truste tees es fo forr ap appr prov oval al if ap appl plica icable ble.. Th Thee Trea Treasu sure rerr is re resp spon onsi sibl blee to mai maint ntain ain cas cash h bo book ok an and d prep prepar aree vouch vou cher erss fo forr the the paym paymen ents ts mad made, e, rece receive ive co cont ntri ribu buti tion ons, s, si sign gn acknowl ackn owled edgem gement entss for the amo amount untss or art article icless rec receiv eived ed by the Trust and prepare monthly and yearly statements of revenue and expenditure, as well as, the register of assets of the Trust and place them before the Board of Trustees for their approval. The Treasurer is aut author horize ized d to sig sign n bank chequ cheques, es, applic applicatio ation n for drafts and payment instructions jointly with the Managing Trustee and draw

 

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money from the bank, upto the limits defined by the Board of Trustees in their meetings. The Treasurer is responsible for safe custody of cash, bonds, securities etc. of the Trust. In case, the Treasurer wants to assign the work like preparing budget, monthly re repo port rtss et etc. c. he can do so wi with th th thee prior prior cons consen entt of th thee ot othe herr Managing Trustees to such person as the board may deem fit. 11. CESSATION OF TRUSTEESHIP TRUSTEESHIP::  

A Trustee mentioned above shall cease c ease to be the trustee of the Trust T rust if:-

   

(a) he resigns; (b) he becomes insolvent; (c (c)) He is remo remove ved d by the maj major orit ity y of th thee memb member erss of the the,, if it is found that the trustee(s) activities are detrimental to the activities or administration or funds of the Trust

12. APPO APPOINTM INTMENT ENT OF TRUST TRUSTEES: EES:

Any va Any vaca canc ncy y in the the Bo Boar ard d of Trus Truste tees es sh shal alll be fill filled ed up by th thee remaining members of the Trust selecting a suitable person.   13. MEET MEETINGS INGS OF THE TRUSTE TRUSTEES: ES:

a) Th Thee Ma Mana nagi ging ng Trus Truste teee shall shall pre presi side de ov over er all th thee me meet etin ings gs of the trustees and in his absence the Joint Managing Trustee shall preside such meeting and in the absence of both, the trustees attended such meeting may elect any one of them to preside over the meeting; b) The me meeti etings ngs of the Tr Trust ustee eess may be conve convened ned by the Man Managi aging ng c)

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Trustee or under his direction by any other Trustees On Onee ha half lf of the the Bo Boar ard d of Tru Trust stee eess or a mi mini nimu mum m of 2 tr trus uste tees es,, whichever is higher, shall constitute the QUORUM for the Board of Trustees meetings. In the ev event ent of equ equality ality of vote votes, s, the pe person rson pr presid esiding ing such me meeting eting shall exercise casting vote (additional vote). Any re resol soluti ution on in writi writing ng sign signed ed by all the Trust Trustees ees by circ circula ulatio tion n shall have equal force as thou though gh it has been passed at a meeti meeting ng of the Board of Trustees. The me meeti eting ng of the B Boar oard d shal shalll be conve convened ned af after ter gi giving ving at le least ast a The Board of Trustees may invite other persons interested in the objects and functioning of the Trust to attend the meetings of the Board, but they shall not be entitled vote in the meetings of the

 

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Board. Boar d. Week Weeks’ s’ no noti tice ce un unle less ss all th thee Tr Trus uste tees es ag agre reee to acc accep eptt a shorter notice. g) The Boa Board rd of Tru Truste stees es may invite oth other er pers persons ons int intere ereste sted d in the objects and functioning of the Trust to attend the meetings of the Board, but they shall not be entitled vote in the meetings of the Board.

14. SUI SUITS: TS:

The Managing Trustees of the Trust is authorized to sue or to be sued on behalf of the Trust. 15. EXEC EXECUTION UTION OF DOCUME DOCUMENTS: NTS:

All Deeds, Documents etc. shall be executed by the Managing Trustees  jointly representing the Trust. Trust. 16. ACCOU ACCOUNTS NTS AND A AUDIT: UDIT:

a) The Tru Truste stees es shall mai mainta ntain in true and corr correct ect acco account untss of all Trus Trustt monies and of all the income and investments and all the outgoing expenses. b) The ye year ar of accou account nt shal shalll be the fi financial nancial y year ear comm commencing encing ffrom rom 1 st APRIL and ending 31 st March. c) The Truste Trustees es sha shall ll each y year ear iss issue ue a rreport eport sett setting ing out the ac accounts counts showing the income and expenditure of the Trust for the preceding year not later than six months from the end of the preceding year of accounts. d) The ac acco coun unts ts of the the Tr Trus ustt sha hall ll be au audi dite ted d eve verry year ear by a Chartered Accountant who may be appointed for the purpose by th thee boar board d of Tr Trus uste tees es and the the au audi dite ted d st stat atem emen entt of acco accoun unts ts together with Auditors’ report shall be laid before the Board of Trustees for approval Provided that, the above clause (d) shall not be applicable to the trust if total income before the exemptions u/s 11 and 12 of the trustt does not exceed trus exceedss the maximum amount not chargeable to tax

17. BANK ACCOU ACCOUNT: NT:

 

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The President, Vice-President and the Treasurer shall jointly/Solely operate Bank Accounts on behalf of the Trust. In their absence, any of th thee Trus Truste tees es ma may y be auth author oriz ized ed by th thee Bo Boar ard d of Trus Truste tees es,, by a resolution, to operate the bank accounts. One or more Bank Accounts may be opened in any Bank and or Banks in the name of the Trust anywhere in carry out the objectives of the Trust.   18. AMEN AMENDMEN DMENTS: TS:

While this Trust shall be irrevocable, the Board of Trustees may amend any of the clauses except those relating to objects of the Trust. The First Trustees, at a duly convened meeting of the Board with at least 2 weeks’ notice, and by a resolution passed by at least three-fourths majority of the Board of Trustees. The amendments to the Trust Deed can only be passed by a resolution of the Board of Trustees in an actual meeting and not by circulation. If any alteration or amendment is necessary, the same shall be affected through supplementary deed/deeds with the previous approval of the Commissioner of Income Tax and these shall be read together with the main Trust deed. 19. APPLICATION OF INCOME AN AND D TRUST FUND:

The Board shall also determine from time to time, the amount it shall spend on the various activities of the Trust. The Board of Trustees shall have the power to invest the funds, assets and properties of the Trust at their discretion in accordance with the provisions of the Income Tax Act, 1961. As well as of any other law for the time being in force as are applicable to charitable trusts.

20. REMUNERTION TO THE TRUSTEES:

The Trustee Trusteess are not enti entitle tled d for any remu remuner neratio ation. n. But the they y shall however be entitled to receive out of pocket expenses incurred by them in the course course of dischar discharging ging the fu function nctionss of the Trust Trust.. Furt Further her the Income and funds of the Trust will be solely utilized towards the

 

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objects and no portion of it will be utilized for payment of Trustees by way profits, interest, and dividend or otherwise. 21. INDEM INDEMNITY NITY::

Every Trustee shall be indemnified out of the fund in respect of any loss arising from or contingent upon any investment made out of the monies of the Trust unless such loss shall have been occasioned by own negligence and also every Trustee shall be indemnified out of the Trus Trustt ag again ainst st all pr proc ocee eedi ding ngs, s, su suit its, s, cla claims ims,, co cost sts, s, da damag mages es and expenses occasioned by any claim in connection with the matters or affairs relating to the Trust created by these presents or in the exercise of powers or discretion vested in them by virtue of these presents. 22. IRRE IRREVOCAB VOCABILIT ILITY: Y:

The Trust is irrevocable. 23. ACTIV ACTIVITIE ITIES S OF THE TRUST:

The activities of the Trust shall be only within India and its Union territories and shall not be extended anywhere outside India. 24. DISS DISSOLUT OLUTION: ION:

In the event of dissolution of the Trust, the entire Trust funds shall be realized and first be used for payment of liabilities of the Trust. The assets left if any the net assets of the Trust shall be transferred to an association of persons or trust or society having similar objects of this Trust, in no event it shall be distributed in any manner, to any of the Board of Trustees or their relatives or related concerns or to the settlor., 25. PROCE PROCEEDING EDING OF THE TRU TRUST: ST:

Any defect in the constitution of the Trust shall not invalidate its proceedings 26. RES RESIDU IDUARY ARY::

For matters not provided for in these presents, the provisions of the Indian Trust Act and the Income Tax Act, 1961 and rules made there under will apply accordingly.

 

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IN WITNESS WHEREOF THE AUTHOIR OF THE TRUST HAS SET HIS HAND AND SIGNATURE ON THE DAY, MONTH AND YEAR FIRST ABOVE WRITTEN IN THE PRESENCE OF  Witnesses: 1. Name, Occupation and Address

SIGNATURE OF Author

Signature: -------------------Name: Address: 2. Name, Occupation and Address SIGNATURE OF the Trustee’s