Review of Existing Trust Deed Clauses

Before initiating an amendment, the original trust deed must be reviewed to determine whether it permits modifications. The deed governs the scope and method of any changes.

• Check for a clause that explicitly allows amendment or alteration
  
• Identify which clauses are amendable and which are permanent
  
• Determine whether settlor, trustees, or a court must approve the change
  
• Verify if unanimous trustee consent is required for the amendment
  
• Note any restrictions on altering charitable purpose or beneficiary scope

Preparation of Draft Amendment Deed

A supplementary deed must be drafted to record the changes intended in the trust deed. The language should be clear, lawful, and properly referenced.

• Use a legal format to draft the amendment or supplementary deed
  
• Mention the date of original deed and specify the clause being changed
  
• Clearly outline the new wording or insertion to be adopted
  
• Justify the purpose of the amendment in a covering note or resolution
  
• Attach necessary annexures or documents as supporting evidence

Trustee Resolution and Consent

A formal resolution must be passed by the board of trustees to approve the amendment. Trustee participation ensures collective agreement and record of consent.

• Hold a board meeting and circulate the draft amendment to all trustees
  
• Record minutes of the meeting and obtain signatures of all members
  
• Pass a resolution approving the changes with specific reference
  
• Include the effective date of amendment in the resolution
  
• Preserve meeting attendance and resolution copies for future use

Execution and Registration of Amendment Deed

The amendment must be executed on appropriate stamp paper and registered with the same authority where the original trust deed was filed. This ensures legal recognition.

• Print the deed on non-judicial stamp paper as per state law
  
• Get it signed by all trustees or authorized representatives
  
• Register it at the sub-registrar’s office where the trust is registered
  
• Submit identity proof, PAN, and original deed copy along with the amendment
  
• Collect the registration receipt and certified copy of the updated deed

Intimation to Statutory Authorities

After registration, the changes must be communicated to all relevant statutory bodies. This ensures that legal records are up to date and prevents future disputes.

• Submit a copy of the amended deed to the Income Tax Department
  
• Update NGO Darpan, FCRA portal, and CSR registration if applicable
  
• Intimate banks and change records linked to the PAN and TAN
  
• Include amendments in the next audit report and financial statements
  
• Maintain updated documentation for donors and stakeholders

Legal and Tax Implications of Amendment

Amending a trust deed may impact tax exemptions or compliance status. Legal opinion should be sought to avoid complications with regulatory authorities.

• Changes to objects or beneficiary clauses may require re-approval under 12AB
  
• Income Tax Department may examine whether the trust remains charitable
  
• Ensure that modifications do not violate conditions of tax or FCRA registration
  
• Avoid changes that introduce personal benefit or commercial activity
  
• Retain proof of legal review and compliance for future audits