Can a trust be dissolved?

When a public charitable trust is properly and completely constituted, it becomes irrevocable, even though it is voluntary. Accordingly, there is no provision under the various Public Trusts Acts (including the Bombay Public Trusts Act, 1950) to legally terminate or dissolve a valid public charitable trust.
The transaction of the said charitable trust can be reduced and only the following below compliance needs to be submitted every year:

  1. A trustee of a Public Trust which has an annual income exceeding
    ₹ 5000/- for public religious trust and ₹ 10,000/- in other cases, shall at least one month before the commencement of each accounting year, prepare a budget in the form of Schedule VII-A showing the probable receipts and disbursements of the trust and submit them to the office of the Charity Commissioner. From last one year it as become compulsory to file the budget and also law provides that the trust needs to file the budget.
    2.    The accounts are required to be audited within six months from the last date of the accounting period and AUDITOR shall forward a copy of balance sheet and the income expenditure account along with his audit report and Schedule IXC to the office of the C.C. within a fortnight of the audit. The Auditor will forward the audited accounts along with the audit report to the trustees who in turn will forward the same to the office of CC. Only if the office of CC specifically requires the Auditor to file the audited accounts, than only it is the responsibility of the Auditor to file the audited accounts in the Office of CC.
    3.    Filing of Income Tax Return as per Income Tax Act,1961
    Is amalgamation of trusts possible?
    Section 50A(2) of the Bombay Public Trusts Act allows two or more public trusts to be amalgamated or merged into one single legal entity by framing a common scheme of management or administration. The procedure for amalgamation requires a proper application with court fee stamp to be made to the charity commissioner who, in turn, may also require the trustees to publish a notice in this regard in a newspaper. There should be proper justification for the amalgamation, and the consent for amalgamation should preferably be unanimous on the part of the trustees of all the trusts to be amalgamated.
     After the final order is passed by the charity commissioner, those trusts which are amalgamated cease to exist as separate legal entities and instead, a new legal entity in the form of a new amalgamated trust emerges with a new registration number and scheme of management.

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