Income Tax - Conditions for approval to a Scientific Research Association – CBDT amends rules
As per Rule 5D of the Income Tax Rules, the following are the conditions:-
(1) The sole object of the applicant scientific research association shall be to undertake scientific research.
(2) The applicant scientific research association shall carry on the scientific research activity by itself.
(3) The scientific research association seeking approval under clause (ii) of sub-section (1) of section 35 shall maintain books of account and get such books audited by an accountant as defined in the Explanation to sub-section (2) of section 288 and furnish the report of such audit duly signed and verified by such accountant to the Commissioner of Income-tax or the Director of Income-tax having jurisdiction over the case, by the due date of furnishing the return of income under sub-section (1) of section 139.
(4) The scientific research association shall maintain a separate statement of donations received and amount applied for scientific research and a copy of such statement duly certified by the auditor shall accompany the report of audit referred to in sub-rule (3).
Now the Board has added another sub rule 4A , which stipulates
The scientific research association shall, by the due date of furnishing the return of income under sub-section (1) of section 139, furnish a statement to the Commissioner of Income-tax or Director of Income-tax containing-
(i) a detailed note on the research work undertaken by it during the previous year;
(ii) a summary of research articles published in national or international journals during the year;
(iii) any patent or other similar rights applied for or registered during the year;
(iv) programme of research projects to be undertaken during the forthcoming year and the financial allocation for such programme;
Similar amendments are made for Conditions subject to which approval is to be granted to a University, College or other Institution under clause (ii) and clause (iii) of sub-section (1) of section 35 by adding Rule 5E (4A).
CBDT Notification No. 2/2009, Dated: January 5, 2009