Permanent account number (PAN) has been allocated to about 5 lakh trusts (PAN) to about 5 lakh trusts between Kovid global epidemic so far i.e. between March 2019 to March 2025. The data released by the Income Tax Department in early April shows that the number of Trusts with PAN allocation was 8,47,834 in 2019, which has increased by 56 per cent to 13 lakhs by March 2025.
Trusts for PAN are registered at both national and state levels. This means that centralized figures about the installation of trusts unlike companies are limited. Allotment of PAN indicates activities in this region.
Experts say that the presence of trust in PAN card data is increasing due to tax compliance requirements, expenditure on tax compliance requirements, expenditure and trust for succession and tax planning by wealthy persons and families.
Pankaj Bagri, partner of Deloite India, said, “Trusts include public religious trusts and private trusts.” As far as Dharmada Trusts are concerned, the number of people who got PAN cards during the last decade has increased. New trusts are getting registered due to increase in social items in India. It is mainly gaining speed with the registration of eligible trusts for compulsory CSR law and CSR project. As far as private trusts are concerned, it is showing an increase due to the succession scheme being made by business houses in India and the boom in property management.
Neha Pathak, managing partner and chief (trust and estate planning) of Motilal Oswal Wealth, said, “We are watching inquiries in this regard daily.” He said that the application for setting up the trust has increased by 100 per cent over the epidemic. The trend of establishing a trust for the management of assets and succession has increased. Apart from old business houses, it is now becoming popular among the founders of startups and companies with medium -sized companies.
Pathak said, “People are now very worried about controversies between family members, apart from marital disputes.” The transfer of properties also becomes easier due to the trust as it eliminates needs such as the requirement of probate petition to examine its authenticity before making the will.
Due to the strict rules of foreign funding, old religious institutions now probably do less use to trusts, but wealthy persons have given speed to new trusts. The number of institutions seen in tax data may move further.
First Published – May 7, 2025 | 10:54 pm IST
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