Trust Registration & Compliance in 2026: Updated Rules You Should Know (Complete Guide)

Setting up a trust in India is one of the most effective ways to carry out charitable, social, educational, or religious activities. But in 2026, the government has tightened regulations and compliance requirements for trusts, NGOs, and societies.

If you’re planning to register a trust in 2026 or already manage one, this guide explains everything—registration steps, documentation, compliance rules, due dates, and new updates introduced for FY 2025–26.

1️⃣ What Is a Trust? (Simple Explanation)

A trust is a legal entity created to manage property or funds for charitable, educational, or public welfare purposes.

In India, trusts are mainly registered under:

• Indian Trusts Act, 1882 (Private Trusts)

• State Public Trusts Acts (Public Charitable/Religious Trusts)

2️⃣ Types of Trusts in India (2026)

In 2026, you can register any of the following:

✔ Public Charitable Trust

For charitable activities like education, healthcare, women welfare, etc.

✔ Religious Trust

For managing temples, religious services, and spiritual activities.

✔ Private Trust

Used for family wealth management and succession planning.

✔ Society or Section 8 Company (Alternative)

Many NGOs are shifting to Section 8 Companies due to better credibility.

3️⃣ Trust Registration Process in 2026 (Step-by-Step)

Step 1: Choose Trust Name

The name must be unique and not similar to existing registered trusts.

Step 2: Prepare Trust Deed

This is the most important legal document. It includes:

• Trust Name

• Registered Office Address

• Objectives

• Details of Trustees

• Rules & Powers

• Management Structure

Step 3: Choose Trustees

A trust must have minimum 2 trustees (some states require 3).

Step 4: Register the Deed with the Sub-Registrar

The founder and trustees must physically visit the registrar office.

Documents required:

• Aadhaar & PAN of trustees

• Electricity bill/utility bill

• Passport-size photos

• Trust deed (2 copies)

• NOC from property owner (if rented)

Step 5: Apply for PAN & Bank Account

After registration, apply for a PAN Card and open a bank account.

Step 6: Apply for 12AB & 80G Registration

This is mandatory for receiving donations and tax exemptions.

4️⃣ Mandatory Registrations for Trusts in 2026

✔ 12AB Registration

Required for availing income tax exemption.
Renewal required every 5 years.

✔ 80G Registration

Enables donors to claim tax deduction.

✔ CSR Eligibility

For receiving corporate donations under CSR Schedule VII.

✔ NGO Darpan Registration

Mandatory for receiving government grants.

✔ FCRA Registration (if foreign donations)

Required for receiving funds from abroad.

5️⃣ 2026 Compliance Requirements for Trusts

These rules are more strict than earlier years. Trusts must comply with:

🟧 A. Annual Returns & Audits

1. Income Tax Return (ITR-7)

2. Annual Audit (if income > ₹2,50,000)

3. 12AB Compliance Report

4. 80G Donation Report (Form 10BD & 10BE)

🟧 B. Book-Keeping Requirements

Maintain:

• Cash book

• Ledger

• Asset register

• Donation receipts

• Utilization records

• Bank statements reconciliation

Auditors are instructed to review digital bookkeeping in FY 2025–26.

🟧 C. GST Compliance (If Applicable)

Trusts offering:

• training programs

• skill development

• commercial services

must register under GST.

🟧 D. CSR Reporting

CSR-eligible trusts must file:

• Activity reports

• Impact assessment

• CSR utilization certificate

6️⃣ Key Updates for Trusts in FY 2025–26 (Important!)

✔ Stricter 80G Donation Reporting

All donations must be linked with donor PAN and reported in Form 10BD.

✔ Tighter Audit Trail Rules

Accounting systems must maintain a non-editable audit log.

✔ FCRA Scrutiny Increased

Foreign funds will undergo enhanced verification.

✔ Trust Transparency Norms Updated

Annual activity details must match tax filings.

7️⃣ Penalties for Non-Compliance (2026)

Trusts may face:

• Loss of 80G & 12AB

• Heavy penalties under Income Tax Act

• Freezing of bank accounts (for FCRA cases)

• CSR funding ban

• Income tax reassessment

• Registration cancelation

8️⃣ Advantages of Registering a Trust in 2026

• 100% legal protection

• Eligibility for tax exemption

• Can receive donations legally

• Eligible for CSR funding

• Better credibility & transparency

• Ideal for schools, clinics, religious bodies, skill centers, NGOs

⭐ Conclusion

Running a trust in 2026 requires strong compliance and transparent financial management. With stricter donation reporting, audit requirements, and digital record rules, it’s important to stay updated and file all forms before the due dates.

If you’re planning to start a trust or need help maintaining compliance, expert help from a CA ensures full legal safety.

🟢 Need Help With Trust Registration or Compliance?

CA Shiwali provides:

• Trust Registration

• 12AB & 80G Registration

• Trust Accounting & Audit

• CSR Compliance

• FCRA Assistance

• Annual Return Filing (ITR-7)

📞 9266032777
🌐 www.Cashiwali.com
📍 Deoli – Khanpur, Near Saket, South Delhi