The Central Board of Direct Taxes, through Notification No. 42/2026 dated March 30, 2026, approved Indian Institute of Technology Bombay as a recognized institution for “Scientific Research” under Section 35(1)(ii) of the Income-tax Act, 1961. This approval enables donors contributing to IIT Bombay for scientific research to claim weighted tax deductions, subject to compliance with prescribed rules. The notification is applicable for Assessment Years 2026–27 to 2030–31 and imposes specific conditions, including adherence to Rule 5E, timely filing of annual donation statements in Form 10BD, and issuance of donation certificates in Form 10BE to donors. The institution is also permitted to file correction statements where necessary. The approval ensures transparency, accountability, and proper reporting of research donations, thereby promoting scientific research while enabling tax benefits for contributors, provided all statutory compliance requirements are fulfilled.
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
Notification No. 42/2026 – Income Tax | Dated: 30th March, 2026
S.O. 1658(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 ‘Indian Institute of Technology’ (IIT) Bombay, (PAN: AAATI1446A), 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) ‘Indian Institute of Technology’ (IIT), Bombay shall comply with the conditions specified in Rule 5E of the Income-tax Rules, 1962.
(ii) ‘Indian Institute of Technology’ (IIT), Bombay 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) ‘Indian Institute of Technology’ (IIT), Bombay 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.
[Notification No. 42 /2026 /F. No 203/09/2025/ITA-II]
INDU BALA, Dy. Secy.
