Charitable purpose under Income Tax Act includes, relief of the poor, education, medical relief, preservation of environment, etc. Amongst people who have sizable wealth, creating social good is becoming one of the key goals in life. A large number of people want to support certain philanthropic causes during their lifetime and wish such support to continue even after their demise.
Creating a Charitable Trust can provide a structure to these activities and ensure that the funds earmarked for these purposes are well spent. Such trusts get exemption from payment of taxes and the donors to such trust can also avail certain tax benefits.