A Trust is the obligation or responsibility placed on one in whom confidence or authority is place; it is a confidence reposed in a person by conveying to him the legal title to property which he is to hold for the benefit of others. Therefore, the “Trustee” responsibility includes protection of rightful ownership in the Trust property, the preservation of the Trust property and channelising the income from the Trust property in accordance with the intentions of the creator of the Trust.

For creating a private Trust, the foremost requirement is that the Author must express with reasonable certainty by words or acts, an intention on his part to create a Trust. Thus, a Trust may be declared either by words, spoken or written or by acts. Where a Trust is declared by words, the language used must be clear enough to show an intention to create a Trust. No formal language is required to constitute an effective declaration of Trust, but the language used must make it certain that:

1. The Author intended to constitute a Trust binding in law on himself or the person to whom the property was given.
2. The Author intended to bind definite property by the Trust.
3. The Author intended to benefit a definite person or persons in a definite way.

To obtain registration under Section 12A, an application in Form 10A for registration of a charitable or religious trust or institution can be made. The application should compulsorily be made in the online mode. The application shall be addressed to the Commissioner of Income Tax along with the necessary documents.

​​​​​​TONNAGE TAX​

• In case of a company, the income from the business of operating qualifying ships, may, at its option, be computed in accordance with the provisions of Chapter XII-G.
• Thus, tonnage taxation is a scheme of presumptive taxation wherein notional income arising from operation of ships is determined on basis of tonnage of ships.

Special provisions relating to income of shipping companies

• Section – 115V : Definitions.
• Section – 115VA : Computation of profits and gains from the business of operating qualifying ships.
• Section – 115VB : Operating ships.
• Section – 115VC : Qualifying company.
• Section – 115VD : Qualifying ship.
• Section – 115VE : Manner of computation of income under tonnage tax scheme
• Section – 115VF : Tonnage income.
• Section – 115VG : Computation of tonnage income.
• Section – 115VH : Calculation in case of joint operation, etc.
• Section – 115V-I : Relevant shipping income.
• Section – 115VJ : Treatment of common costs.
• Section – 115VK : Depreciation.
• Section – 115VL : General exclusion of deduction and set off, etc.
• Section – 115VM : Exclusion of loss.
• Section – 115VN : Chargeable gains from transfer of tonnage tax assets.
• Section – 115V-O : Exclusion from provisions of section 115JB.
• Section – 115VP : Method and time of opting for tonnage tax scheme.
• Section – 115VQ : Period for which tonnage tax option to remain in force.
• Section – 115VR : Renewal of tonnage tax scheme.
• Section – 115VS : Prohibition to opt for tonnage tax scheme in certain cases.
• Section – 115VT : Transfer of profits to Tonnage Tax Reserve Account.
• Section – 115VU : Minimum training requirement for tonnage tax company.
• Section – 115VV : Limit for charter in of tonnage
• Section – 115VW : Maintenance and audit of accounts.
• Section – 115VX : Determination of tonnage.
• Section – 115VY : Amalgamation.
• Section – 115VZ : Demerger.
• Section – 115VZA : Effect of temporarily ceasing to operate qualifying ships.
• Section – 115VZB : Avoidance of tax.
• Section – 115VZC : Exclusion from tonnage tax scheme.