The Ministry of Finance, through the Central Board of Direct Taxes, issued Notification No. 40/2026 dated 30 March 2026 approving the Indian Institute of Technology, Bhilai under section 35(1)(ii) of the Income-tax Act, 1961 for the purpose of scientific research. The approval categorises the institution as a university, college, or other institution eligible under the relevant provisions read with Rules 5C and 5E of the Income-tax Rules, 1962. The notification is applicable for Assessment Years 2026–27 to 2030–31, subject to compliance with specified conditions. These include adherence to Rule 5E, furnishing annual statements of donations in Form 10BD within prescribed timelines, allowing correction statements, and issuing certificates to donors in Form 10BE as per Rule 18AB. The notification formalises the institution’s eligibility under the tax framework for scientific research, contingent upon continued compliance with statutory reporting and procedural requirements.
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
Notification No. 40/2026 – Income Tax | Dated: 30th March, 2026
S.O. 1657(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), Bhilai (PAN:AABAI0415K), 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), Bhilai shall comply with the conditions specified in Rule 5E of the Income-tax Rules, 1962.
(ii) Indian Institute of Technology (IIT), Bhilai 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), Bhilai 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. 40 /2026 / F. No. 203/07/2025/ITA-II]
INDU BALA, Dy. Secy.
