Executive Summary:
This notification announces the Central Government's approval of the Indian Council of Medical Research (ICMR) under Section 35(1)(ii) of the Income-tax Act, 1961, effective from the assessment year 2019-2020. The approval is for ICMR to operate as an "Other Institution" engaged in research activities, subject to specific conditions. The notification also outlines potential reasons for withdrawal of the approval.
Key Points / Main Content:
Approval Details:
* The Indian Council of Medical Research (ICMR) is approved under Section 35(1)(ii) of the Income-tax Act, 1961.
* PAN: AAEAT4818Q
* Approval is effective from the assessment year 2019-2020.
* ICMR is categorized as an "Other Institution" engaged in research activities.
Conditions for Approval:
* Sums paid to ICMR must be utilized for scientific research.
* Grants/Donations extended to Non-ICMR Institutes by ICMR are not eligible for benefit under section 35(1)(ii). However, collaborative research activity carried out by an ICMR-institute utilizing Grants/Donations received by the approved organization shall not be covered under the said exclusion.
* ICMR must conduct scientific research through its faculty members or enrolled students.
* ICMR must maintain separate, audited books of accounts for scientific research funds.
* Audit reports, signed and verified by an accountant, must be furnished to the Commissioner/Director of Incometax by the due date for income return filing under Section 139(1) of the Act.
* ICMR must maintain a separate statement of donations received and amounts applied for scientific research, duly certified by the auditor, accompanying the audit report.
Withdrawal of Approval:
* The Central Government may withdraw approval if ICMR:
* Fails to maintain separate books of accounts.
* Fails to furnish its audit report.
* Fails to furnish its statement of donations received and sums applied for scientific research.
* Ceases to carry on its research activities, or its research activities are not genuine.
* Ceases to comply with Section 35(1)(ii) of the Act and Rules 5C and 5E.
Impact Analysis:
Indian Council of Medical Research (ICMR):
* Impact: Approved as a research institution for tax benefits under specific conditions, and is subject to potential withdrawal of this approval if conditions are not met.
* Action Required: Ensure compliance with all conditions, including proper accounting, auditing, and reporting of research funds.
Donors to ICMR:
* Impact: Donations to ICMR for scientific research are eligible for tax benefits under Section 35(1)(ii) of the Income-tax Act, 1961.
* Action Required: Continue donating to ICMR, donations shall be utilized for scientific research to remain eligible for tax benefits.
Commissioner/Director of Incometax:
* Impact: Responsible for overseeing ICMR's compliance with the conditions of approval.
* Action Required: Review audit reports and statements submitted by ICMR.
Accountant (Auditor):
* Impact: Responsible for auditing ICMR's books of accounts related to scientific research funds.
* Action Required: Conduct thorough audits, verify the accuracy of financial statements, and provide signed audit reports.
Key Entities Referenced
New Delhi: The city where the notification was issued.
Indian Council of Medical Research: An organization approved by the Central Government for the purpose of clause ii of subsection 1 of section 35 of the Incometax Act, 1961.
Incometax Act, 1961: The act of the Indian Parliament under which the Indian Council of Medical Research has been approved.
Incometax Rules, 1962: The rules under the Incometax Act, 1961, specifically Rules 5C and 5E, mentioned in the notification.
Central Board of Direct Taxes: The department under the Ministry of Finance that issued the notification.
Ministry of Finance: The ministry under which the Central Board of Direct Taxes operates.
Assessment year 2019-2020: The assessment year from which the approval for the Indian Council of Medical Research is effective.
section 35 of the Incometax Act, 1961: Relates to expenses on scientific research.
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EXTRAORDINARY
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PART II—Section 3—Sub-section (ii)
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No. 3718] NEW DELHI, TUESDAY, SEPTEMBER 18, 2018/BHADRA 27, 1940
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अअअअििििधधधधससससचचूूचचूू ननननाााा
नई (cid:1)द(cid:3)ली, 18 िसत(cid:9)ब र, 2018
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िनयमावली, 1962 (उ"त िनयमावली) के िनयम 5ग और 5ड. के साथ प,ठत आयकर अिधिनयम, 1961 (उ" त अिधिनयम)
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िन(cid:9)न िलिखत शत7 के अधीन अनुसधं ान काय7 से जुड़ े‘‘अअअअ....यययय ससससं(cid:14)ं(cid:14)ं(cid:14)ं(cid:14)थथथथाााानननन’’’’’’’’ क(cid:19) :ेणी म 4अनमु ो(cid:1)दत (cid:1)कया जाता ह,ै नामत:-
(i) अनुमो(cid:1)दत संगठन अथा(cid:13)त ममममससससैैैै सससस (cid:25)(cid:25) (cid:25)(cid:25) इइइइंंििंंििडडडडययययनननन ककककााााउउउउंंंंििििससससलललल ऑऑऑऑफफफफ ममममििेेििेे डडडडककककलललल (cid:31)(cid:31)(cid:31)(cid:31)ररररससससचचचच(cid:25)(cid:25) (cid:25)(cid:25) को 2द; रािश का उपयोग, वै<ािनक
अनसु ंधान के िलए (cid:1)कया जाएगा। अनमु ो(cid:1)दत संगठन (cid:24)ारा गैर-आईसीएमआर सं?थान@ को वै<ािनक अनुसंधान करन े हते ु (cid:1)दए
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सं?थान (cid:24)ारा (cid:1)कसी सहयोगी अनसु ंधान गितिविध को करन े के िलए अनुमो(cid:1)दत संगठन (cid:24)ारा (cid:1)दए गए अनुदान/दान उA
अपवज(cid:13)न के तहत कवर नहE (cid:1)कए जाएंग।े
(ii) अनमु ो(cid:1)दत संगठन अपन ेसकं ाय सद?य@ अथवा अपने पंजीकृत छाD@ के माHयम से वै<ािनक अनसु ंधान करेगा;
(iii) अनुमो(cid:1)दत संगठन वै<ािनक अनसु ंधान के िलए इसके (cid:24)ारा 2ाJत रािश के संबंध म 4 अअअअललललगगगग ललललखखेेखखेे ाााा बबबबििििहहहहययययाााा ंंंं रखेगा
िजनम 4 अनुसधं ान करन े के िलए 2यु"त रािश दशाई(cid:13) गई हो, ऐसी खाता बिहय@ क(cid:19) उ"त अिधिनयम क(cid:19) धारा 288 क(cid:19) उप
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5518 GI/2018 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(ii)]
उपधारा (1) के अतं ग(cid:13)त आय िववरणी 2?त ुत करने क(cid:19) िनयत ितिथ तक ऐस े लेखाकार (cid:24)ारा िविधवत सP यािपत एवं
ह?त ाO,रत लेखा परीOा ,रपोट(cid:13) मामल ेम 4OेDािधकार रखने वाल ेआयकर आयु" त अथवा आयकर िनदेशक को 2? तुत करेगा;
(iv) अनुमो(cid:1)दत संगठन वै<ािनक अनसु ंधान के िलए 2ाJ त दान तथा 2यु" त रािश का अलग िववरण रखेगा और
उपयु(cid:13)"त लेखा परीOा ,रपोट(cid:13) के साथ लेखा परीOक (cid:24)ारा िविधवत सP यािपत ऐस ेिववरण क(cid:19) 2ित 2? तुत करेगा।
2. क45 सरकार यह अनमु ोदन वापस ले लेगी य(cid:1)द अनमु ो(cid:1)दत सगं ठन:-
(क) पैराSाफ 1 के उप-पैराSाफ (iii) म4 यथा उि(cid:3)ल िखत अअअअललललगगगग ललललेखेखेखेखाााा बबबबििििहहहहययययाााा ंंंंरखन ेम 4असफल रहता ह;ै अथवा
(ख) परै ाSाफ 1 के उप-पैराSाफ (iii) म4 यथा उि(cid:3)ल िखत अपनी लेखा परीOा ,रपोट(cid:13) 2? तुत करने म4 असफल रहता ह;ै
अथवा
(ग) पैराSाफ 1 के उप-पैराSाफ (iv) म4 यथा उि(cid:3)ल िखत वै<ािनक अनुसधं ान के िलए 2ाJ त दान एवं 2यु" त धनरािश
का िववरण 2?त ुत करने म4 असफल रहता ह;ै अथवा
(घ) अपन ेअनसु ंधान काय (cid:13)कलाप@ को करना बंद कर दते ा ह ै अथवा इसके अनसु धं ान काय(cid:13) कलाप@ को वा? तिवक नहE
पाया जाता ह;ै अथवा
(ड.) उ"त िनयमावली के िनयम 5ग और 5ड. के साथ प,ठत उ" त अिधिनयम क(cid:19) धारा 35 क(cid:19) उपधारा (1) के खंड
(ii) के 2ावधान@ के अनुVप नहE होगा तथा उनका पालन नहE करेगा।
[अिधसूचना स.ं 54/2018/फा. सं. 203/15/2018-आ.क.िन.-।।]
राजराजWे री आर., अवर सिचव
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 18th September, 2018
S.O. 4885(E).—It is hereby notified for general information that the organization M/s Indian Council of
Medical Research (PAN:- AAEAT4818Q) 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 5E of the Income-tax
Rules, 1962 (said Rules), from Assessment year 2019-2020 and onwards under the category of “Other Institution”
engaged in research activities subject to the following conditions, namely:-
(i) The sums paid to the approved organization i.e. M/s Indian Council of Medical Research shall be utilized
for scientific research. The Grants/Donations for undertaking scientific research which are extended to Non-ICMR
Institutes by the approved organization shall not be eligible for benefit under section 35(1)(ii) of the said Act. However,
any collaborative research activity carried out by an ICMR-institute by utilizing the Grants/Donations received by the
approved organization shall not be covered under the said exclusion.
(ii) The approved organization shall carry out scientific research through its faculty members or its enrolled
students;
(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.¹Hkkx IIµ[k.M 3(ii)º Hkkjr dk jkti=k % vlk/kj.k 3
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
(d) 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 5E of the said Rules.
[Notification No. 54/2018/F.No. 203/15/2018-ITA-II]
RAJARAJESWARI R., Under Secy.
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.