Establishing the Trust Deed

• Draft a detailed trust deed clearly outlining charitable objectives.
  
• Include information about the settlor, trustees, beneficiaries, property, and administration.
  
• Ensure the objectives align with definitions of charity under Indian law such as education, relief of poor, medical relief, or advancement of public utility.

Registration with Sub-Registrar

• Submit the executed trust deed on non-judicial stamp paper to the local Sub-Registrar.
  
• Provide identity and address proof of settlor and trustees.
  
• Pay applicable registration fees and stamp duty based on state laws.
  
• Obtain the registered copy of the trust deed with official seal.

Application for PAN

• Apply for Permanent Account Number (PAN) in the name of the trust through NSDL or UTIITSL.
  
• Submit a copy of the registered trust deed, identity proof, and address of the trust.
  
• PAN is mandatory for all financial, tax, and banking purposes.

Registration under Section 12A

• Submit Form 10A online to the Income Tax Department via the Income Tax Portal.
  
• Upload trust deed, PAN, registration certificate, and details of trustees and activities.
  
• Once approved, the trust becomes eligible for income tax exemption on income used for charitable purposes.

Application for Section 80G

• File Form 10AB for registration under Section 80G to allow donors to claim deductions.
  
• Submit financial statements, activity reports, and utilization statements if applicable.
  
• Approval grants recognition as a charitable institution eligible for donor incentives.

Filing and Compliance

• Maintain proper books of accounts and annual returns.
  
• Ensure compliance with audit requirements if gross receipts exceed the threshold.
  
• Submit income tax returns (ITR-7) annually.

Recognition by Authorities

• Charity Commissioner or local authorities may grant public charitable trust status based on purpose and function.
  
• Some states have additional requirements, like registration under state public trust acts.

Monitoring of Activities

• Periodic review of activities and fund usage by tax authorities and regulatory bodies.
  
• Non-compliance may result in cancellation of 12A or 80G registration.