5 Lakh Trust PAN added in PAN Records since COVID

Around 500,000 new permanent account numbers (PANs) have been given to trusts between March 2019 and March 2025.

The total number of PANs issued to trusts rose from 847,834 in 2019 to 1.3 million by March 2025, according to recent Income Tax Department statistics released in April. This represents a 56% increase.

Unlike company formations, which have centralized reporting, trust registrations happen at both national and state levels, making comprehensive data harder to track. PAN card issuances provide a useful indicator of trust activity. Experts suggest this growth is likely due to stricter tax compliance requirements, increased corporate social responsibility (CSR) spending, and more wealthy individuals and families setting up trusts for succession planning and tax benefits.

“Trusts include both public charitable and private trusts. Charitable trusts getting PAN cards have increased over the last decade because of more social spending in India and new trust registrations. A major reason could be the mandatory CSR laws and registration requirements for eligible trusts implementing CSR projects. For private trusts, we’re seeing more business families in India using them for succession planning and wealth management,” explained a tax expert.

“We’re receiving inquiries every day,” another tax expert noted. Requests for setting up trusts have doubled compared to pre-pandemic levels, according to her.

Trust creation as a way to manage assets and plan for succession is becoming popular not just with established industrial families but also with startup founders and mid-sized companies.

There has been significant investment in sectors like pharmaceuticals, defense, and manufacturing. This wealth creation has led to more focus on succession planning. “People are worried about marital disputes and conflicts between family members,” she added.

Additionally, trusts can help reduce the impact of potential inheritance taxes or estate duties that might heavily tax wealth as it passes between generations. Trusts also make wealth transfer easier by avoiding complicated requirements like probate petitions that verify a will’s authenticity before it can take effect. India now ranks third globally in billionaire count (284), Business Standard reported in March, with over a dozen new billionaires added in the past year, according to the Hurun Global Rich List 2025.

A 2022 Credit Suisse report estimated that India had 796,000 dollar millionaires in 2021, a number expected to more than double by 2026.

Stricter compliance requirements for trusts likely contributed to the higher numbers, according to an expert. While older charities are less likely to use trusts now due to tighter foreign-funding regulations, wealthy individuals continue to create new trusts. The numbers appearing in tax data will probably continue to increase.

“This trend is expected to continue, driven by mandatory PAN requirements,” he said.