The Central Board of Direct Taxes, under the Ministry of Finance, has issued a notification approving a Chennai-based university trust as an eligible institution for “Scientific Research” under section 35(1)(ii) of the Income-tax Act, 1961, read with Rules 5C and 5E. The approval is valid for Assessment Years 2026-27 to 2030-31 and enables donors to claim weighted tax benefits, subject to strict compliance conditions. The institution must adhere to Rule 5E requirements, file annual statements of donations in Form 10BD by 31 May following each financial year, issue donor certificates in Form 10BE within prescribed timelines, and submit correction statements where necessary. The notification, issued with a Document Identification Number (DIN), reinforces enhanced reporting, transparency, and accountability obligations introduced for research-linked tax incentives, ensuring that deductions are supported by timely disclosures and standardized certification while promoting genuine scientific research through regulated institutional approvals.
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
Notification No. 16/2026-Income Tax
New Delhi, the 30th January, 2026
S.O. 433(E).— In exercise of the powers conferred by clause (ii) of sub-section (1) of section 35 of the Income-tax Act, 1961 (43 of 1961) (the Act) read with Rules 5C and 5E of the Income-tax Rules, 1962 (the Rules), the Central Government hereby approves Rajalakshmi University Trust, Chennai (PAN: AABTR3879F), for ‘Scientific Research’ under the category of ‘University, college or other institution’ for the purposes of clause (ii) of sub-section (1) of section 35 of the Income-tax Act, 1961 read with rules 5C and 5E of the Income-tax Rules, 1962.
2. This Notification shall be applicable for Assessment years 2026-27 to 2030-31 subject to the following conditions:
(i) Rajalakshmi University Trust, Chennai shall comply with the conditions specified in Rule 5E of the Income-tax Rules,1962.
(ii) Rajalakshmi University Trust, Chennai shall prepare statement under sub-section (1A) of section 35 of the Act for each financial year as prescribed in Form No.10BD and deliver or cause to be delivered to the said prescribed income-tax authority or the person authorised by such authority such statement in such form, verified in such manner, setting forth such particulars on or before the 31st May, immediately following the financial year in which the donation is received, as prescribed in Rule 18AB of the Income-tax Rules,1962.
Provided that such university, college or other institution may also deliver to the prescribed authority a correction statement for rectification of any mistake or to add, delete or update the information furnished in the statement delivered under sub-section (1A) of section 35 of the Act;
(iii) Rajalakshmi University Trust, Chennai shall furnish to the donor, a certificate in Form No.10BE specifying the amount of donation in such manner, containing such particulars and within such time from the date of receipt of sum, as prescribed in Rule 18AB of the Income-tax Rules,1962.
[F.No. 203/04/2025/ITA-II]
INDU BALA, Dy. Secy.
(Notification No. 16/2026)
This notification is issued with Document Identification No. (DIN) ITBA/ADF/F/ADF_23/2025-26/1085337281(1) of Income Tax Department.
