How much stamp duty is payable on a private trust deed?

Stamp duty is not uniform across India. The amount and method of payment depend on the State or Union Territory and the nature and value of the property or settlement. The applicable State or UT stamp and registration portal should be checked before execution.

Does a private trust need PAN and income-tax compliance?

Tax treatment depends on the nature of the trust, beneficiaries, income and other facts. The Income Tax Department provides e-filing facilities for trusts and representative assessees. From 1 April 2026 current income-tax compliance is governed by the Income-tax Act, 2025, subject to transitional provisions for earlier years.

Legal format | India | Updated 31 August 2026

Private Trust Deed Format and Registration Guide

Q: Is registration of a private trust deed compulsory in India?

A trust relating to immovable property must comply with section 5 of the Indian Trusts Act, 1882: it must be declared by a non-testamentary written instrument signed by the author of the trust or trustee and registered, or be created by will. Registration requirements for other instruments depend on their contents and the Registration Act, 1908.

A practical specimen for creating a private trust for identified beneficiaries, together with current guidance on the Indian Trusts Act, registration, stamp duty and tax compliance.

Private Trust: legal overview

A private trust is generally created for one or more identified or identifiable beneficiaries rather than for the public at large. The Indian Trusts Act, 1882 governs private trusts and trustees, subject to its scope and other applicable personal, property, registration and State laws.

Under section 5 of the Indian Trusts Act, 1882, a trust relating to immovable property is not valid unless it is declared by a non-testamentary instrument in writing signed by the author of the trust or the trustee and registered, or is created by will. A trust of movable property may be declared in the prescribed manner or created by transfer of ownership of the property to the trustee.

Important: This specimen is a general drafting aid. A trust deed should be adapted to the settlor's objectives, beneficiary structure, nature and location of assets, succession plan, tax position and the stamp/registration law of the relevant State or Union Territory.

Essential elements of a valid private trust

Certainty

The instrument should identify with reasonable certainty the intention to create the trust, its purpose, beneficiary or beneficiaries and the trust property.

Lawful purpose

The purpose of the trust must be lawful. A trust with an unlawful purpose is void to the extent prescribed by law.

Trust property

The property settled on trust should be clearly described. For immovable property, use complete title and schedule particulars and obtain local advice on valuation, stamp duty and registration.

Trustees and beneficiaries

The deed should identify the first trustees, beneficiaries, their respective powers and interests, and provide workable rules for appointment, resignation, replacement and decision-making.

Registration and stamp duty

Registration is particularly important where immovable property forms part of the trust. The Indian Trusts Act, 1882 expressly requires a registered non-testamentary written instrument for a trust of immovable property. The Registration Act, 1908 also governs documents that require compulsory registration and the legal consequences of non-registration.

Stamp duty must be checked separately. The Indian Stamp Act, 1899 and State amendments or State stamp enactments govern the duty payable on instruments, and rates can differ substantially between States and Union Territories. The deed should therefore be stamped according to the law applicable at the place of execution/property before it is presented for registration.

Practical point: Before signing, confirm the correct stamp article, value of stamp duty, registration fee, jurisdictional Sub-Registrar, witness/identity requirements and whether electronic appointment or e-stamping is available in the relevant State or Union Territory.

PAN and income-tax compliance

A private trust may have income-tax, return-filing, withholding and representative-assessment obligations depending on the trust terms, identity and shares of beneficiaries, source of income and other circumstances. From 1 April 2026, current-year income-tax compliance is governed by the Income-tax Act, 2025, while transitional provisions preserve the operation of the earlier law for periods governed by it.

The Income Tax Department's e-Filing system recognises trustees acting for a trust in writing and provides representative-assessee facilities. The trust's actual tax position should be reviewed before distributions, investments or carrying on any business activity.

Private Trust Deed format

____________ TRUST

THIS DEED OF TRUST is made on this ________ day of ________, ____ by __________________, son/daughter/wife of __________________, residing at ________________________________________, hereinafter referred to as the "Settlor" (which expression shall, unless repugnant to the context, include his/her legal representatives and permitted successors) of the ONE PART;

AND

1. __________________, son/daughter/wife of __________________, residing at ________________________________________; and

2. __________________, son/daughter/wife of __________________, residing at ________________________________________,

hereinafter jointly referred to as the "Trustees" (which expression shall, unless repugnant to the context, include the trustee or trustees for the time being and their lawful successors in office) of the OTHER PART.

WHEREAS the Settlor desires to create an irrevocable private trust for the benefit of the beneficiaries specified in this Deed and has transferred/handed over to the Trustees a sum of Rs. ________ (Rupees __________________ only) as the initial trust property, receipt of which the Trustees acknowledge.

AND WHEREAS the Settlor has constituted the Trust with the persons named above as its first Trustees.

NOW THIS DEED WITNESSETH AS FOLLOWS:

1. Name of the Trust

This Trust shall be known as the "__________________ Trust", hereinafter referred to as the "Trust".

2. Trust Property

The Settlor hereby settles and transfers the initial sum/property described above upon the Trustees, together with all additions, accretions, investments, reinvestments, income, gifts and other property lawfully received or acquired for the Trust from time to time (collectively, the "Trust Property"), to be held and administered upon the terms of this Deed.

3. Acceptance and Duties of Trustees

The Trustees accept the Trust Property and shall hold, preserve, invest and administer it in accordance with this Deed and applicable law, solely for the benefit and purposes stated herein.

4. Beneficial Holding

The Trustees shall hold and stand possessed of the Trust Property during the tenure of the Trust for the benefit of the beneficiaries specified below, subject to the powers and discretions expressly conferred by this Deed and applicable law.

5. Beneficiaries

The beneficiaries of the Trust shall be:

__________________, aged about ________ years, son/daughter of __________________, residing at ____________________________; and such other beneficiary/beneficiaries, if any, as expressly listed in Schedule A to this Deed.

6. Tenure of the Trust

The Trust shall continue for a period of ________ years from the date of this Deed, or for such lawful period as specified herein, unless terminated earlier in accordance with this Deed and applicable law. Any extension or early termination shall be effected only where legally permissible and in the interests of the beneficiaries.

7. Purposes of the Trust

During the tenure of the Trust, the Trustees may apply the whole or any part of the income and, where this Deed permits, the corpus for the maintenance, education, medical treatment, marriage, housing, welfare or other lawful benefit of the beneficiaries. On lawful termination of the Trust, the remaining Trust Property shall be transferred or distributed to the beneficiaries in accordance with their rights under this Deed and applicable law.

8. Expenses of the Trust

The Trustees may pay from the Trust Property all reasonable costs, taxes, duties, professional charges and expenses properly incurred in administering, protecting or managing the Trust and its assets.

9. Business or Partnership Activities

Subject to applicable law and the tax consequences of doing so, the Trustees may carry on or participate in a lawful business or partnership for and on behalf of the Trust where expressly permitted by this Deed and considered beneficial to the beneficiaries. The Trustees should obtain professional tax and legal advice before exercising this power.

10. Nomination in Business Entities

Where legally permissible and necessary for a permitted investment or business activity, the Trustees may nominate one or more Trustees or other eligible persons to represent the Trust's interest in a partnership, company or other entity, subject to applicable law and appropriate indemnity from the Trust Property for liabilities properly incurred in that representative capacity.

11. Trustee Expenses

All reasonable expenses properly incurred by a Trustee in the discharge of his or her duties shall be reimbursable from the Trust Property and recorded in the accounts of the Trust.

12. Taxes and Statutory Liabilities

Taxes, duties and other statutory liabilities payable by the Trust or by the Trustees in their representative capacity shall, to the extent lawfully chargeable to the Trust, be provided for and paid from the Trust Property before distributions are made to beneficiaries.

13. Powers of the Trustees

Subject to this Deed, fiduciary duties and applicable law, the Trustees may:

invest or reinvest Trust Property in lawful investments, securities, deposits, movable or immovable property;
sell, exchange, vary or otherwise lawfully dispose of investments and reinvest the proceeds;
pay taxes, charges and expenses relating to the Trust Property;
lease or license Trust immovable property on commercially reasonable terms;
sell or transfer Trust assets where permitted and apply or reinvest the proceeds for the Trust;
borrow money for legitimate Trust purposes and create lawful security over Trust assets where expressly permitted;
settle, compromise, mediate or refer disputes concerning the Trust to arbitration where legally permissible;
accept lawful gifts or contributions in cash or kind for the Trust;
receive and hold money, property and assets on behalf of the Trust;
appoint advocates, chartered accountants, bankers, investment advisers, agents or other professionals;
appoint employees or administrative personnel on reasonable terms for management of the Trust.

14. Ancillary Powers and Amendments

The Trustees shall have all incidental powers reasonably necessary to administer the Trust. No amendment shall defeat the vested rights of a beneficiary, change an irrevocable disposition contrary to law, introduce an unlawful purpose, or otherwise exceed the power of amendment lawfully reserved by this Deed.

15. Bank Accounts

The Trustees may open and operate bank or deposit accounts in the name of the Trust and may deposit, withdraw, transfer and invest Trust monies in accordance with resolutions of the Trustees and applicable banking requirements.

16. Attorneys and Agents

The Trustees may, by written authority, appoint attorneys or agents and delegate administrative or ministerial functions to them. Fiduciary responsibilities that cannot lawfully be delegated shall remain with the Trustees.

17. Delegation Among Trustees

Subject to applicable law and this Deed, a Trustee may authorise another co-Trustee in writing to perform specified acts on his or her behalf, provided that the delegation does not amount to an unlawful abandonment of the Trustee's fiduciary duties.

18. Resolutions and Authorised Signatories

The Trustees may resolve that any document, instruction or act approved by them may be signed or carried out by one or more authorised Trustees. The scope and duration of the authority shall be recorded in the relevant resolution.

19. Professional Assistance

The Trustees may engage advocates, chartered accountants, bankers, valuers, investment professionals and other advisers as reasonably required for Trust affairs and may pay their proper charges from the Trust Property.

20. Trustee Liability

A Trustee shall be responsible for his or her own breach of trust, fraud, wilful default or other liability imposed by law. Nothing in this Deed shall exclude or restrict liability to an extent that applicable law does not permit.

21. Accounts of the Trust

The Trustees shall maintain true and correct accounts of all money received and spent, assets and liabilities, investments, distributions and other material transactions of the Trust. Accounts shall ordinarily be closed on 31 March or on such other date as may be permitted or required by applicable tax law.

22. Decisions by Trustees

The Trustees shall endeavour to act unanimously. Where unanimity is not possible and more than one Trustee holds office, decisions may be taken by majority unless this Deed or applicable law requires unanimity. A conflicted Trustee shall disclose the conflict and act in accordance with law.

23. Resignation of Trustees

A Trustee may resign by giving at least one month's written notice to the other Trustee or Trustees, subject to completion of any steps reasonably necessary to protect the Trust Property and transfer records, control and custody to the continuing or successor Trustees.

24. Appointment of Trustees

The continuing Trustees may appoint one or more additional or replacement Trustees in accordance with this Deed and applicable law. Unless otherwise expressly provided, appointment of a new Trustee shall require the written consent of all continuing Trustees.

25. Death, Incapacity or Retirement of Trustee

If a Trustee dies, resigns, becomes incapable of acting or otherwise ceases to hold office, the continuing Trustee or Trustees may appoint a successor in accordance with this Deed and applicable law.

26. Vesting in New Trustees

Upon appointment of a new Trustee, the Trust Property shall be transferred or vested in the continuing and new Trustees in the manner required by law, together with the powers and obligations attaching to the office.

27. Emergency Distributions

If a beneficiary requires funds for a genuine emergency, including urgent medical, maintenance or similar needs, the Trustees may make an appropriate distribution from income or corpus to the extent permitted by this Deed and applicable law, having regard to the interests of all beneficiaries.

28. Governing Law

This Deed shall be governed by the laws of India and, for stamp duty, registration, property and other local matters, by the applicable law of the State or Union Territory having jurisdiction.

Execution

IN WITNESS WHEREOF the Settlor and the Trustees have executed this Deed on the day, month and year first written above.

SETTLOR

Signature: __________________________
Name: _____________________________

TRUSTEE 1

Signature: __________________________
Name: _____________________________

TRUSTEE 2

Signature: __________________________
Name: _____________________________

WITNESSES

1. Signature: ______________________
Name & address: ______________________________________________

2. Signature: ______________________
Name & address: ______________________________________________

Private Trust Deed execution checklist

Confirm the settlor, trustees and all beneficiaries with accurate names, addresses and identification particulars.
Clearly identify the initial trust property and attach a detailed schedule for immovable property or substantial assets.
Decide whether the trust is revocable or irrevocable and whether beneficiary shares are fixed or discretionary; draft the deed consistently.
Check the applicable State/UT stamp duty and registration fee before execution.
Where immovable property is settled, comply with the writing and registration requirement under section 5 of the Indian Trusts Act, 1882 and the Registration Act, 1908.
Arrange witnesses, identity/address documents, photographs or biometric requirements prescribed by the registering authority.
After execution, address PAN, bank account, accounting, return filing, TDS and other tax/compliance requirements relevant to the trust.

Official legal and compliance resources

Use official government sources to verify the law and current compliance requirements:

India Code - Indian Trusts Act, 1882 India Code - Registration Act, 1908 India Code - Indian Stamp Act, 1899 Income Tax Department - e-Filing Portal Income Tax Department - Income-tax Act, 2025 overview Income Tax Department - Register as Representative Assessee

Frequently asked questions

Is registration of a private trust deed compulsory?

For a trust of immovable property, section 5 of the Indian Trusts Act, 1882 requires a registered non-testamentary written instrument signed by the author of the trust or trustee, unless the trust is created by will. Other registration requirements depend on the nature and terms of the instrument.

How much stamp duty is payable?

There is no single all-India rate for every private trust deed. Stamp duty and registration charges depend on the applicable State or Union Territory law, the instrument and, in many cases, the nature or value of the property involved.

Can this specimen be used without modification?

It should be treated as a starting format. Trusts involving immovable property, minors, non-residents, business assets, succession planning, substantial investments or complex tax consequences should be individually drafted or reviewed by a qualified professional.