Draft Income-tax Rule 31 prescribes mandatory reporting and certification requirements for donations eligible for deduction under Section 45(4)(a). Deduction for sums paid to a research association, university, college, other institution under Section 45(3)(a), or a company under Section 45(3)(b) will not be allowed unless the recipient entity prepares a statement of particulars in Form No. 15 for each tax year and furnishes it to the Director General of Income-tax (Systems) or an authorised person. Additionally, the entity must issue a donation certificate to the donor in Form No. 16 specifying the amount received. While aggregating donations for reporting, all donations of the same nature made by a person during the tax year must be consolidated. In cases where a donation is recorded in multiple names without specified proportions, the amount must be equally attributed among donors. Form No. 15 must be verified by the person authorised to verify the return of income under Section 265. Both the statement in Form No. 15 and the donor certificate in Form No. 16 must be furnished on or before 31st May following the relevant tax year. The rule ensures transparency, accurate reporting, and accountability in research-linked donation deductions.
Extract of Rule No. 31 of Draft Income-tax Rules, 2026
Rule 31
Furnishing of statement of particulars in respect of donation and certificate to the donor under section 45(4)(a).
(1) For the purposes of section 45(4)(a), the deduction is respect of any sum paid to the research association, university, college or other institution referred to in 45(3)(a) or the company referred to in 45(3)(b) shall not be allowed, unless such research association, university, college or other institution or company––
(a) prepares statement in Form No. 15 for each tax year and deliver or cause to be delivered to the Director General of Income-tax (Systems) or the person authorized by him; and
(b) furnish to the donor, a certificate specifying the amount of donation in Form No. 16
(2) The research association, university, college or other institution or company shall, while aggregating the amounts for determining the sums received for reporting in respect of any person, —
(a) take into account all the donations of the same nature paid by that person during the tax year; and
(b) proportionately attribute the value of the donation or the aggregated value of all the donations to all the persons, in a case where the donation is recorded in the name of more than one person and where no proportion is specified by the donors, attribute equally to all the donors.
(3) Form No. 15 shall be verified by the person who is authorised to verify the return of income under section 265.
(4) Statement of particulars in Form No. 15 and the certificate to the donor in Form No. 16 shall be furnished on or before the 31st May, immediately following the tax year in which the donation is received.
