Approval of scientific research association, University etc for IT deduction – guidelines issued

By Vijay Kumar

Under Section 35 of the Income Tax Act, a deduction is allowed on money paid to scientific research association, University etc. But what is a university? Income Tax officers will decide that. And the University has to apply to the IT department to get the approval. The TIOL team that appeared before the Parliamentary Committee had told the Hon’ble MPs that this is a sheer waste of time and energy by reputed educational institutions. Why can’t Universities and institutes recognized by UGC, CSIR, AICTE etc be straight away approved without an application?

Any way Board has prescribed the guidelines, form and the manner of approval. Applications have to be filed in duplicate with the Commissioner and copy to the Board.

And there are conditions-

++ The sole object of the scientific research association shall be to scientific research.

++ research association shall carry on the scientific research activity by itself.

++ maintain books of account and get such books audited.

++ maintain a separate statement of donations received and amount applied for scientific research.

NOTIFICATION NO. 309/2006, Dated : October 30, 2006