Income Tax Act, 1961, defines a Trust as “An arrangement by which property is handed over to or vested in a person, to use and dispose off for the benefit of another person”. Creation of a Trust can be broadly classified into two methods namely private trust formation and public trust formation.
There are numerous benefits:
- A registered Trust Deed becomes an official document which carries support and force of law.
- A registered Trust Deed effectuates transmutation of possession
- A conveyance of trust property to the trustee under a registered deed is generally not open to challenge.