Rule 36 of the Draft Income-tax Rules, 2026 lays down detailed application procedures and eligibility conditions for affordable housing projects and semiconductor wafer fabrication units to be notified as specified businesses under section 46.
Rule 35 prescribes the authority, procedure, timelines, and compliance conditions for company approval under Section 45(3)(b). It mandates strict audit, reporting, and research-use requirements to prevent misuse of tax benefits.
Rule 34 prescribes conditions for universities, colleges, and institutions seeking approval under Section 45(4), mandating separate books, audits, and detailed research reporting. The rule ensures research funds are properly utilised and monitored.
Rule 33 of the Draft Income-tax Rules, 2026 prescribes strict conditions for research associations seeking approval under Section 45(4). It mandates audit, reporting, donation tracking, and genuine research activity to retain approval.
Rule 32 of Draft Income-tax Rules, 2026 sets procedure, Form 17 filing, timelines, scrutiny, approval validity up to 5 years, deficiency process, and withdrawal norms under Section 45(4).
Draft Rule 31 requires research institutions and eligible companies to file Form 15 and issue Form 16 certificates to donors for claiming deductions under Section 45(4)(a). Without proper reporting and certification, deduction will not be allowed, making compliance mandatory.
Draft Rule 30 sets out the prescribed authorities, approval timeline, forms, and strict reporting conditions for sponsored scientific research under Section 45(3)(c). The rule mandates feasibility review, time-bound approval, audited accounts, and detailed progress reporting.
Draft Rule 29 defines the prescribed authorities, approval process, timelines, and compliance conditions for claiming scientific research deductions under Sections 45(1)(a)(ii) and 45(2). Companies must obtain DSIR approval and maintain audited, facility-wise records to qualify.
BCAS urged SEBI to introduce a structured migration framework for individuals converting into corporate/LLP Research Analyst entities. The representation highlights business disruption and regulatory uncertainty caused by absence of transitional provisions.
Draft Income-tax Rules 2026 mandate Form 5 for preliminary expense statements under Section 44 and Form 6 for audit reports under Sections 44 and 51. The rules clarify timelines, formats, and filing authorities to ensure compliance.
