Rule 33 of the Draft Income-tax Rules, 2026 lays down the conditions subject to which approval may be granted to a research association under Section 45(4) read with Section 45(3)(a) of the Act. The rule mandates that the sole object of the applicant must be to undertake scientific research, social science research, or statistical research, and that such research activity must be carried on by the association itself. The association is required to maintain proper books of account and have them audited by an accountant as defined under section 515(3)(b) of the Act. The audit report, duly signed and verified, must be furnished to the jurisdictional Commissioner of Income-tax by the due date for filing the return under section 263(1).
Additionally, the association must maintain a separate statement detailing donations received and amounts applied toward eligible research, certified by the auditor and submitted along with the audit report. It must also file an annual statement containing a detailed note on research undertaken, summary of published research articles, patents or similar rights applied for or registered, and proposed research programmes with financial allocation for the forthcoming year.
If the Commissioner finds non-maintenance of books, failure to submit audit reports or required statements, cessation or lack of genuineness in research activities, or non-fulfilment of approval conditions, he may conduct inquiries and report such findings to the Central Government within six months from the return filing date.
Extract of Rule No. 33 of Draft Income-tax Rules, 2026
Rule 33
Conditions subject to which approval is to be granted to a research association under section 45(4) read with section 45(3)(a) of the Act.
(1) The sole object of the applicant research association shall be to undertake scientific research or research in social science or statistical research, as the case may be.
(2) The applicant research association shall carry on the research activity by itself.
(3) The research association seeking approval under section 45(4)(b) of the Act shall––
(a) maintain books of account;
(b) get such books audited by an accountant as defined in the section 515(3)(b) of the Act; and
(c) furnish the report of such audit duly signed and verified by such accountant to the Commissioner of Income-tax having jurisdiction over the research association, by the due date of furnishing the return of income under section 263(1) of the Act.
(4) The research association shall maintain a separate statement of donations received and amount applied for scientific research or research in social science or statistical research and a copy of such statement duly certified by the auditor shall accompany the report of audit referred to in sub-rule (3).
(5) The research association shall, by the due date of furnishing the return of income under section 263(1) of the Act, furnish a statement to the Commissioner of Income-tax containing—
(a) a detailed note on the research work undertaken by it during the tax year;
(b) a summary of research articles published in national or international journals during the tax year;
(c) any patent or other similar rights applied for or registered during the tax year;
(d) programme of research projects to be undertaken during the forthcoming tax year and the financial allocation for such programme.
(6) If it is found by the Commissioner of Income-tax that the research association,—
(a) is not maintaining books of account; or
(b) has failed to furnish its audit report; or
(c) has not furnished its statement of the sums received and the sums applied for scientific research or research in social science or statistical research or a statement referred to in sub-rule (5); or (d) has ceased to carry on its research activities, or its activities are not genuine; or
(e) is not fulfilling the conditions subject to which approval was granted to it,
he may after making appropriate enquiries furnish a report on the circumstances referred to in clauses (a) to (e) above to the Central Government within six months from the date of furnishing the return of income under section 263(1) of the Act.
