Introduction: The Ministry of Finance, through the Central Board of Direct Taxes, has issued Notification No. 30/2024-Income Tax, dated March 13th, 2024. This notification confers approval upon Sardar Vallabhbhai National Institute of Technology, Surat, for engaging in scientific research under the Income-tax Act, 1961. The significance of this approval, its implications, and the conditions attached are to be carefully examined.
Detailed Analysis:
1. Legal Authority and Framework: The notification derives its authority from clause (ii) of sub-section (1) of section 35 of the Income-tax Act, 1961, in conjunction with Rules 5C and 5E of the Income-tax Rules, 1962. This provision empowers the Central Government to approve institutions for scientific research and grants them certain benefits and exemptions under the Income-tax Act.
2. Approval of Sardar Vallabhbhai National Institute of Technology: The notification specifically approves Sardar Vallabhbhai National Institute of Technology, located in Surat, under the category of ‘University, college, or other institution’ for conducting scientific research. This approval is crucial as it bestows upon the institute the privileges and benefits outlined in the Income-tax Act.
3. Retrospective Application and Applicability: The notification’s applicability extends retrospectively from the previous year 2023-24, implying that the institute can avail benefits for this period. Furthermore, it remains effective for Assessment Years 2024-25 to 2028-29, providing a timeframe for the institute to plan and utilize the benefits conferred.
4. Explanatory Memorandum: The explanatory memorandum accompanying the notification certifies that no adverse impact arises from granting retrospective effect to the notification. This assurance ensures that the decision aligns with the principles of fairness and legality.
Conclusion: The approval of Sardar Vallabhbhai National Institute of Technology, Surat, for scientific research under the Income-tax Act, 1961, marks a significant milestone for the institution. It not only acknowledges the institute’s contribution to research but also facilitates its growth by providing fiscal incentives. However, stakeholders must navigate the conditions and requirements laid out in the notification to fully harness these benefits. Overall, this development underscores the government’s commitment to fostering research and innovation within academic institutions.
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MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
Notification No. 30/2024-Income Tax | Dated : 13th March, 2024
S.O. 1325(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 ‘Sardar Vallabhbhai National Institute of Technology’, Surat (PAN: AAAJS1184P) under the category of ‘University, college or other institution’ for ‘Scientific Research’ for the purposes of clause (ii) of subsection (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 2024-25 to 2028-29.
[F. No. 203/20/2023/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.
