Issues of trust

 Social welfare is the basic responsibility of government. Charitable and religious trusts lessen this burden. Therefore, tax concessions are offered to such trusts.

 Income applied for pre-defined and declared charitable objects is exempt from income tax. Wealth tax is also not charged on properties held under the trust.

 If eligible, donors are also given deductions from income tax u/s 80G or Section 80GGA. Skilful and intelligent tax planners tend to use trusts for evasion of taxes. This results in a plethora of regulatory measures.

 Consequently, the legislation has become complicated. More so because the terms like