Executive Summary:
This notification announces the Central Government's approval of the Indian Institute of Technology (Indian School of Mines), Dhanbad, for the purpose of clause (iii) of subsection (1) of section 35 of the Income-tax Act, 1961, effective from the assessment year 2019-2020. The approval is subject to specific conditions related to research activities, financial accountability, and reporting requirements. The institute must adhere to these conditions to maintain its approved status.
Key Points / Main Content:
* **Approval:**
* The Central Government approves the Indian Institute of Technology (Indian School of Mines), Dhanbad.
* Approval is for the purpose of Section 35(1)(iii) of the Income-tax Act, 1961.
* Effective from the assessment year 2019-2020.
* **Conditions for Approval:**
* Funds must be used for scientific research and research in social science or statistical research.
* Research must be carried out by faculty members or enrolled students.
* Separate books of accounts must be maintained for research funds.
* Accounts must be audited by a qualified accountant.
* An audit report must be furnished to the Commissioner/Director of Incometax by the due date of income return filing under Section 139(1).
* A separate statement of donations received and amounts applied for research must be maintained.
* A certified copy of this statement, certified by the auditor, must accompany the audit report.
* A detailed statement on research work undertaken, articles published, patents applied for/registered, and future research plans must be furnished to the Commissioner/Director of Income-tax by the due date of filing the return of income under Section 139(1).
* **Withdrawal of Approval:**
* The Central Government may withdraw approval if the institute:
* Fails to maintain separate books of accounts.
* Fails to furnish the audit report.
* Fails to furnish the statement of donations received and sums applied for scientific research.
* Ceases research activities or its activities are not genuine.
* Fails to comply with Section 35(1)(iii) of the Income-tax Act, 1961, read with Rules 5C and 5E of the Income-tax Rules, 1962.
Impact Analysis:
Indian Institute of Technology (Indian School of Mines), Dhanbad:
* Impact:
* Designation as an approved institution under Section 35 of the Income-tax Act, 1961, is contingent on meeting specific requirements for the use of funds and reporting.
* Failure to adhere to the conditions may result in withdrawal of approval.
* Action Required:
* Ensure funds are used solely for scientific research and research in social science or statistical research.
* Maintain separate, audited books of accounts for research funds.
* Furnish audit reports and statements of donations received and research expenditure to the Commissioner/Director of Income-tax by the due date.
* Comply with all provisions of Section 35(1)(iii) of the Income-tax Act, 1961, and Rules 5C and 5E of the Income-tax Rules, 1962.
Commissioner/Director of Income-tax:
* Impact:
* Responsible for receiving and reviewing audit reports and statements from the approved institution.
* Must ensure the institution complies with the conditions for approval.
* Action Required:
* Review audit reports and statements for accuracy and completeness.
* Monitor the institution's compliance with the provisions of the Income-tax Act and Rules.
Central Government:
* Impact:
* Responsible for monitoring and enforcing compliance with the approval conditions.
* Has the authority to withdraw approval if conditions are not met.
* Action Required:
* Monitor the institution's adherence to the conditions.
* Take appropriate action, including withdrawal of approval, if non-compliance is detected.
Key Entities Referenced
Central Board of Direct Taxes: A government organization under the Department of Revenue, Ministry of Finance.
New Delhi: The location where the notification was issued.
Indian Institute of Technology Indian School of Mines, Dhanbad: An educational institution approved by the Central Government for specific purposes under the Income-tax Act, 1961.
Income-tax Act, 1961: The primary legislation governing income tax in India, under which the approval to the institution is granted.
Incometax Rules, 1962: The rules framed under the Income-tax Act, 1961, specifying the procedures and guidelines for implementing the provisions of the Act.
Section 35 of the Income-tax Act, 1961: A specific section of the Income-tax Act, 1961 related to deductions for scientific research.
Assessment year 2019-2020: The assessment year from which the approval to the institution is effective.
Ministry of Finance: The ministry under which the Department of Revenue and Central Board of Direct Taxes operate.
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अअअअससससााााधधधधााााररररणणणण
EXTRAORDINARY
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सससस..ंं..ंं 72] ननननईईईई (cid:1)(cid:1)(cid:1)(cid:1)दददद(cid:3)(cid:3)(cid:3)(cid:3)ललललीीीी,,,, शशशश(cid:8)(cid:8)ुु(cid:8)(cid:8)ुु ववववाााारररर,,,, जजजजननननववववररररीीीी 3333,,,, 2222000022220000////पपपपौौौौषषषष 11113333,,,, 1111999944441111
No. 72] NEW DELHI, FRIDAY, JANUARY 3, 2020/PAUSHA 13, 1941
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अअअअििििधधधधससससचचूूचचूू ननननाााा
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93 GI/2020 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(ii)
लेखाकार से लेखा परीAा कराएगा और उ(cid:21)त अिधिनयम क(cid:15) धारा 139 क(cid:15) उप-धारा (1) के अंतग(cid:9)त आय िववरणी
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(घ) अपन े अनुसंधान काय(cid:9)कलाप7 को करना बंद कर देता ह ै अथवा इसके अनुसंधान काय(cid:9)कलाप7 को वा%त िवक नहU पाया
जाता ह;ैअथवा
(ड.) उ(cid:21) त िनयमावली के िनयम 5ग और 5ड. के साथ प(cid:23)ठत उ(cid:21)त अिधिनयम क(cid:15) धारा 35 क(cid:15) उपधारा (1) के खडं (ii) के
(cid:25)ावधान7 के अनुEप नहU ह ैतथा उनका पालन नहU करता ह।ै
[अिधसूचना सं. 2/2020/फा. सं. 203/07/2019-आ.क.िन.-II]
राजाराजे0री आर., अवर सिचव
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 3rd January, 2020
S.O. 74(E).—It is hereby notified for general information that the organization M/s Indian
Institute of Technology (Indian School of Mines), Dhanbad (PAN:- AAAAI0686D) has been
approved by the Central Government for the purpose of clause (ii)/(iii) 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 “University, College or
other Institution”, subject to the following conditions, namely:-
(i) The sums paid to the approved organization shall be used for scientific research and research
in social science or statistical research;3 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(ii)
(ii) The approved organization shall carry out scientific research, research in social science or
statistical 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 and research in social science or statistical 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 research in social science or statistical research
and a copy of such statement duly certified by the auditor shall accompany the report of audit
referred to above.
(v) The approved organization shall, by the due date of furnishing the return of income under
sub-section (1) of section 139, furnish a statement to the Commissioner of Income-tax or
Director of Income-tax containing-
• a detailed note on the research work undertaken by it during the previous year;
• a summary of research articles published in national or international journals during the
year;
• any patent or other similar rights applied for or registered during the year;
• programme of research projects to be undertaken during the forthcoming year and the
financial allocation for such programme.
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 a statement referred in sub-
paragraph(v) 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)/clause(iii) of sub-
section (1) of section 35 of the said Act read with rules 5C and 5E of the said Rules.
[Notification No. 2 /2020 /F.No.203/07/2019/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.