Introduction: The Ministry of Finance, Department of Revenue, Central Board of Direct Taxes, has issued Notification No. 23/2024 – Income Tax on 26th February, 2024. This notification exercises powers conferred by the Income-tax Act, 1961, specifically clause (ii) of sub-section (1) of section 35. The focus is on granting approval to Panjab University, Chandigarh, under the category of ‘University, college or other institution’ for ‘Scientific Research’ purposes.
Key Points:
- Notification Issuer: Central Board of Direct Taxes (CBDT) under the Ministry of Finance.
- Date: February 26, 2024.
- Purpose: Approves Panjab University, Chandigarh for scientific research benefits under Section 35(1)(ii) of the Income Tax Act, 1961.
- Effective Date: Applies retrospectively from the previous year (2023-24) and covers assessment years 2024-25 to 2028-29.
Breakdown:
- The CBDT grants Panjab University (PAN: AAAJP0325R) approval for availing benefits under Section 35(1)(ii) of the Income Tax Act.
- This section allows for exemption or deduction from taxable income for expenditures incurred on scientific research.
- The approval is categorized under “University, college or other institution” for “Scientific Research”.
- The notification applies retroactively to the previous year (2023-24) and remains valid for the next five assessment years (2024-25 to 2028-29).
- The explanatory memorandum clarifies that granting retrospective effect does not adversely affect any individual.
Implications:
- Panjab University can now claim tax benefits for expenses incurred on scientific research activities during the specified period.
- This approval encourages and incentivizes the university’s research endeavors, potentially leading to increased scientific research output.
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MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
Notification No. 23/2024-Income Tax | Dated: 26th February, 2024
S.O. 859(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) read with Rules 5C and 5E of the Income-tax Rules, 1962, the Central Government hereby approves ‘Panjab University, Chandigarh (PAN: AAAJP0325R) under the category of ‘University, college or other institution’ for ‘Scientific Research’ 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 apply with effect from the date of publication in the Official Gazette (i.e. from the Previous Year 2023-24) and accordingly shall be applicable for Assessment Years 2024-2025 to 2028-2029.
[F. No. 203/24/2023/ITA-II]
CASTRO JAYAPRAKASH T., Under Secy.
Explanatory Memorandum: It is certified that no person is being adversely affected by granting retrospective effect to this notification.
