• Jul
  • 18
  • 2009

Notification on Section 35(1)(ii) of the Income-tax Act, 1961 – Scientific research expenditure – Approved scientific research associations/ institutions

NOTIFICATION NO. 56/2009, DATED 9-7-2009

It is hereby notified for general information that the organization Man Made Textile Research Association, Surat has been approved by the Central Government for the purpose of clause (ii) of sub-section (1) of section 35 of the Income-tax Act, 1961 (said Act), read with Rules 5C and 5E  of the Income- tax Rules, 1962 (said Rules), with effect from 1-4-2008 in the category of ‘other institution, Partly engaged in research activities subject to the following conditions, namely:-

(i)  The sums paid to the approved organization shall be utilized for scientific research;

(ii) The approved organization shall carry out scientific research through its faculty members or its enrolled students;

(iii) The approved organization shall maintain separate books of account in respect of the sums received by it for scientific research, reflect therein the amounts used for carrying out research, get such books audited by an accountant as defined in the explanation to sub-section (2) of section 288 of the Said Act 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 of the said Act;

(iv) The approved organization shall maintain a separate statement of donations received and amounts applied for scientific research and a copy of such statement duly certified by the auditor shall accompany the report of  audit referred to above.

The Central Government shall withdraw the approval if the approval organization: -

(a)  fails to maintain separate books of accounts referred to in sub-paragraph (iii)of paragraph 1; or

(b)   fails to furnish its audit report referred to in sub-paragraph (iii) of paragraph 1; or

(c)   fails to furnish its statement of the donations received and sums applied for scientific research referred to in sub-paragraph (iv) of paragraph 1; or

(d)   ceases to carry on its research activities or its research activities are not found to be genuine; or

(e)   ceases to conform to and comply with the provisions of clause (ii) of sub-section (1) of section 35 of the said Act read with rules 5C and 5E of the said Rules.

Sandeep Kanoi

6 Responses to “Notification on Section 35(1)(ii) of the Income-tax Act, 1961 – Scientific research expenditure – Approved scientific research associations/ institutions”

  1. poonam says:

    I want know regarding 80G,12A,35AC,35(1)(ii),35(1)(iii) registration.

  2. deep says:

    i am in search of an NGO registered under section 35(1)(ii) for adjusting donation amount, urgent.

  3. BHAGWAN IYENGAR says:

    Where in ITR2 should I fill in the column to inform about the contribution to Sec 35 -1- (ii)- for scientific research?

  4. VILAS PEDNEKAR says:

    AFTER GETTING THE I.T. NOTIFICATION – u/s 35(1)(II) / (III), PROJECT COST APPROVAL IS THE IMPORTANT PART. ONE NGO POSSESSES THE REGISTRATION u/s 35(1)(II), OF YEAR 2008. THEY HAD PREPARED THE PROJECT. IS IT NECESSARY TO TAKE THE APPROVAL OF PROJECT COST FROM CBDT ? PLZ GIVE ME THE INFORMATION IN THIS SUBJECT.WHAT IS THE MINIMUM AND MAXIMUM LIMIT OF PROJECT COST, UNDER THIS SECTION. CAN I GET THE DETAILS ABOUT APPROVAL PROCEDURE? SOME ONE TOLD ME THAT THAT THERE IS NO LIMIT ( IT IS UNLIMITED ) WHAT IS EXACT?

  5. VILAS PEDNEKAR says:

    every research institute , it may be ngo / company, is investing land bldg, tolls, equipments,staff, books, and researchers are also appointed. by considering the huge investment in research organization all the concerned departments of goi have to think about renewal period of every three years. Either it must to be exteded for 5 years or it must to be declared as a permanant applicable registration of exemption. The renewal is not so easy and due to this renewal every three years every organization is expending valuable time, money, is any provision is declared in case of “siro” & 35(1)(ii) in this respect?

  6. sibdas baskey says:

    I want know regarding 80G,12A,35AC,35(1)(ii),35(1)(iii) registration.

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