Income Tax Approval of the Trust

Creating a trust is only the first step. Without Income Tax approval, the trust does not deliver its intended tax benefits.

Whether it’s a Gratuity Trust or another eligible trust structure, approval from the Income Tax Department is critical. Contributions may otherwise be disallowed, exemptions questioned, and compliance put at risk.

At N D Savla & Associates, we assist in obtaining Income Tax approval of trusts with a clear, compliant, and authority-ready approach.

What Is Income Tax Approval of a Trust?

Income Tax approval is the formal recognition granted by the Income Tax Department that a trust meets the conditions prescribed under the Income Tax Act and applicable rules.

Once approved:

Employer contributions become tax-deductible, where applicable
The trust is recognised as compliant for tax purposes
Future scrutiny risk is significantly reduced

Without approval, even a properly drafted trust can fail its purpose.

Trusts That Commonly Require Income Tax Approval

We assist with approval for:

Gratuity Trusts
Group Gratuity Trusts
Employee benefit trusts
Other eligible trusts requiring approval under the Income Tax Act

Each trust category has specific conditions. Documentation and drafting must align exactly.

Our Income Tax Approval Services

Review of Trust Structure

Examination of trust deed and objectives
Identification of gaps affecting approval
Advisory on corrective steps, if required

Documentation & Application Filing

Preparation of approval application
Compilation of supporting documents
Submission to the Income Tax Department

Representation & Follow-ups

Handling notices, queries, and clarifications
Representation before authorities, if required
Continuous follow-up until approval is granted

Post-Approval Advisory

Guidance on conditions attached to approval
Advisory on ongoing compliance requirements
Support to maintain continuity of approval

Documents Typically Required

Trust Deed
PAN of the trust
Employer / settlor details
Trustee details
Actuarial valuation report (where applicable)
Supporting financial and employee records

Exact requirements may vary based on trust type.

Why Professional Handling Matters ?

Income Tax approval is not a procedural filing. Authorities closely examine:

Trust objectives
Irrevocability clauses
Utilisation of funds
Compliance with statutory conditions

Errors or vague drafting can delay approval or result in rejection.

Why N D Savla & Associates ?

Clients work with us because:

We understand approval conditions in depth
We prepare trusts with scrutiny in mind
We handle communication with tax authorities directly
We remain involved even after approval is granted

Approval is not the finish line. Continuity matters.

Speak to Us

If your trust requires Income Tax approval or your application is pending or questioned, it’s best handled with clarity and preparation.

Connect with N D Savla & Associates for professional assistance with Income Tax approval of trusts.