Executive Summary:
This notification announces the Central Government's approval of Ms Centre for Brain Research, Bangalore, as a Scientific Research Association under Section 35(1)(ii) of the Income-tax Act, 1961, effective from the assessment year 2018-2019. The approval is subject to specific conditions regarding the objective, conduct, and financial reporting of scientific research activities. Non-compliance may result in withdrawal of the approval.
Key Points / Main Content:
Approval Details:
* Ms Centre for Brain Research, Bangalore, is approved as a Scientific Research Association.
* The approval is granted under Section 35(1)(ii) of the Income-tax Act, 1961.
* Effective from the assessment year 2018-2019.
Conditions for Approval:
* The sole objective must be to undertake scientific research.
* The organization must conduct scientific research independently.
* Separate books of accounts must be maintained for research funds.
* Accounts must be audited by a qualified accountant as per Section 288(2) of the Income-tax Act, 1961.
* An audit report, duly signed and verified, must be furnished to the relevant Commissioner or Director of Incometax by the due date for filing income tax returns under Section 139(1).
* A separate statement of donations received and amounts applied for scientific research must be maintained.
* The auditor must certify the donation statement, and it must accompany the audit report.
Withdrawal of Approval:
* The Central Government may withdraw approval if the organization:
* Fails to maintain separate books of accounts.
* Fails to furnish the audit report.
* Fails to furnish the donation statement.
* Ceases research activities or conducts non-genuine research.
* Fails to comply with Section 35(1)(ii) of the Income-tax Act, 1961, and Rules 5C and 5D.
Impact Analysis:
Ms Centre for Brain Research, Bangalore:
* Impact: Recognized as an approved Scientific Research Association, enabling it to receive certain benefits under the Income-tax Act, 1961, subject to adherence to specified conditions.
* Action Required: Maintain separate accounts, conduct audits, and submit reports as required by the notification to retain approved status.
Commissioner/Director of Income-tax:
* Impact: Responsible for overseeing compliance of Ms Centre for Brain Research, Bangalore, with the conditions stipulated in the notification.
* Action Required: Ensure receipt and review of audit reports and donation statements from the organization to verify compliance.
Donors to Ms Centre for Brain Research, Bangalore:
* Impact: Donations to the organization may be eligible for deductions under the Income-tax Act, 1961, provided the organization maintains its approved status.
* Action Required: Verify the organization's continued approved status to confirm eligibility for tax deductions on donations.
Key Entities Referenced
Centre for Brain Research, Bangalore: An organization approved by the Central Government for scientific research.
Incometax Act, 1961: The Indian law under which the Centre for Brain Research, Bangalore is granted approval for tax benefits related to scientific research.
Incometax Rules, 1962: The rules associated with the Incometax Act, 1961, specifically Rules 5C and 5D, which are relevant to the approval of the research organization.
Central Board of Direct Taxes: The department under the Ministry of Finance that issued the notification.
Ministry of Finance: The government ministry under which the Department of Revenue and Central Board of Direct Taxes operate.
New Delhi: The city where the notification was issued.
section 35 of the Incometax Act, 1961: Specific section of the Incometax Act that deals with deductions for scientific research.
Assessment year 20182019: The assessment year from which the approval is valid for the organization.
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6884 GI/2018 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(ii)]
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[अिधसूचना स.ं 83/2018/फा. सं. 203/23/2017-आ.क.िन.-II]
रोिहत गग,(cid:15) िनदशे क
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 26th November, 2018
S.O. 5851(E).—It is hereby notified for general information that the organization M/s Centre for
Brain Research, Bangalore (PAN:AABTC7082K) has been approved by the Central Government for the
purpose of clause (ii) of sub-section (1) of section 35 of the Income-tax Act, 1961 (said Act), read with Rules
5C and 5D of the Income-tax Rules, 1962 (said Rules), from Assessment year 2018-2019 onwards in the
category of ‘Scientific Research Association’, subject to the following conditions, namely:-
(i) The sole objective of the approved ‘Scientific Research Association’ shall be to undertake
scientific research;
(ii) The approved organization shall carry out scientific research by itself;
(iii) The approved organization shall maintain separate books of accounts in respect of the sums
received by it for scientific research, reflect therein the amounts used for carrying out research,
get such books audited by an accountant as defined in the explanation to sub-section (2) of
section 288 of the said Act and furnish the report of such audit duly signed and verified by such
accountant to the Commissioner of Income-tax or the Director of Income-tax having jurisdiction
over the case, by the due date of furnishing the return of income under sub-section (1) of section
139 of the said Act;
(iv) The approved organization shall maintain a separate statement of donations received and
amounts applied for scientific research and a copy of such statement duly certified by the auditor
shall accompany the report of audit referred to above.
2. The Central Government shall withdraw the approval if the approved organization:-
(a) fails to maintain separate books of accounts referred to in sub-paragraph (iii) of paragraph 1; or
(b) fails to furnish its audit report referred to in sub-paragraph (iii) of paragraph 1; or
(c) fails to furnish its statement of the donations received and sums applied for scientific research
referred to in sub-paragraph (iv) of paragraph 1; or
(d) ceases to carry on its research activities or its research activities are not found to be genuine; or
(e) ceases to conform to and comply with the provisions of clause (ii) of sub-section (1) of section
35 of the said Act read with rules 5C and 5D of the said Rules.
[Notification No. 83/2018/F. No. 203/23/2017/ITA-II]
ROHIT GARG, Director
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and Published by the Controller of Publications, Delhi-110054.