Dissolution of trust, Income Tax

[AMIT DOSHI]

A Private Discretionary Trust was formed with a time horizon of 10 years and accordingly deed was executed. Now in next month, 10 yrs shall get completed . Th question is whether such kind of trust is compulsorily reqd to be dissolved or period could be extended though no such cluase of extension exists in the deed. Pls suggest legal support

Posts / Replies

[Rama Krishana]

This is a question which can be answered only after detailed scrutiny of the trust deed only. The question may be determined first like, but restricted to, whether it is irrevocable, whether power of amend is there or not, whether alongwith time limit, any performace clause is there or not and so on. Further, after expiry of the trust deed, who is be beneficial. In my preliminary view, the beneficial person only has the power to make a new trust deed or extend the time of the deed.