Executive Summary:
This notification announces the Central Government's approval of Ms. Manipal Academy of Higher Education, Manipal, Karnataka, for the purpose of clause ii of subsection 1 of section 35 of the Income-tax Act, 1961, effective from the assessment year 2015-16. The approval is contingent upon specific conditions related to the utilization and reporting of funds received for scientific research. The organization must comply with these conditions and reporting requirements to maintain its approved status.
Key Points / Main Content:
Approval Details:
* Ms. Manipal Academy of Higher Education is approved under Section 35(1)(ii) of the Income-tax Act, 1961, from the assessment year 2015-16 onwards.
* The approval is for the category of University, College or other Institution.
Conditions for Approval:
* Funds received must be used solely for scientific research.
* Scientific research must be conducted through faculty members or enrolled students.
* Separate books of accounts must be maintained for scientific research funds.
* These accounts must be audited by a qualified accountant.
* An audit report, duly signed and verified, must be furnished to the relevant Commissioner/Director of Income-tax 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 and certified by the auditor.
* Donations received under Section 35(1)(ii) must be used exclusively for core scientific research, not for hospital activities, patient treatment, general education (excluding research), clinical trials, or other organizational objectives.
Reporting Requirements:
* A statement detailing research work undertaken, research articles published, patents applied for/registered, research project plans, and financial allocations must be furnished to the Commissioner/Director of Income-tax by the due date for filing income tax returns under section 139.
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 statement of donations received and sums applied for scientific research.
* Ceases research activities or if research activities are not genuine.
* Fails to comply with Section 35(1)(ii) of the Income-tax Act and related rules.
Impact Analysis:
Ms. Manipal Academy of Higher Education:
Impact:
* Gains approved status for receiving tax-exempt donations for scientific research, subject to conditions.
* Must adhere to stringent accounting, auditing, and reporting requirements to maintain approved status.
Action Required:
* Ensure funds received are used exclusively for core scientific research.
* Maintain separate, audited accounts for research funds.
* Submit audit reports and detailed statements of research activities and financial allocations to the relevant tax authorities by the specified deadlines.
Central Government (Ministry of Finance, Department of Revenue, Central Board of Direct Taxes):
Impact:
* Responsible for monitoring the organization's compliance with the stipulated conditions.
* Has the authority to withdraw approval if non-compliance is detected.
Action Required:
* Review submitted reports and statements to ensure compliance.
* Take appropriate action, including withdrawal of approval, in case of non-compliance.
Donors to Ms. Manipal Academy of Higher Education:
Impact:
* Donations to the organization for scientific research are eligible for tax benefits under Section 35(1)(ii) of the Income-tax Act, subject to the organization maintaining its approved status.
Action Required:
* Ensure the organization maintains its approved status to avail tax benefits on donations.
Key Entities Referenced
Central Board of Direct Taxes: A government organization under the Department of Revenue, Ministry of Finance.
Income-tax Act, 1961: The primary legislation governing income tax in India, referred to in the context of approvals for organizations undertaking scientific research.
Incometax Rules, 1962: The rules framed under the Income-tax Act, 1961, providing detailed procedures and guidelines for the implementation of the Act.
Manipal Academy of Higher Education, Manipal,Karnataka: An educational institution approved by the Central Government for the purpose of clause ii of subsection 1 of section 35 of the Income-tax Act, 1961.
Section 35 of the Income-tax Act, 1961: A section of the Income-tax Act related to deductions for scientific research.
Commissioner of Incometax: A tax authority responsible for overseeing income tax matters.
Director of Incometax: A tax authority responsible for overseeing income tax matters.
Assessment year 2015-16: The assessment year from which the approval is granted to the Manipal Academy of Higher Education
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((((ररररााााजजजज(cid:14)(cid:14)(cid:14)(cid:14) वव वव ििििववववभभभभाााागगगग))))
((((कककक(cid:17)(cid:17)(cid:17)(cid:17)(cid:18)(cid:18)(cid:18)(cid:18)ीीीीयययय (cid:20)(cid:20)(cid:20)(cid:20)(cid:3)(cid:3)(cid:3)(cid:3)यय यय (cid:21)(cid:21)(cid:21)(cid:21) ककककरररर बबबबोोोोडडडड))))(cid:25)(cid:25)(cid:25)(cid:25)
अअअअििििधधधधससससचचूूचचूू ननननाााा
नई (cid:4)द(cid:6) ली, 26 जून, 2019
ककककाााा....आआआआ.... 2222111199995555((((अअअअ))))....————सव(cid:11)साधारण क(cid:17) जानकारी के िलए एतद(cid:23)् ारा यह अिधसिू चत (cid:4)कया जाता ह ै (cid:4)क आयकर
िनयमावली, 1962 (उ!त िनयमावली) के िनयम 5ग और 5ड. के साथ प+ठत आयकर अिधिनयम, 1961 (उ!त अिधिनयम)
क(cid:17) धारा 35 क(cid:17) उपधारा (1) के खंड (ii) के 1योजनाथ (cid:11) ममममससैैससैै सससस (cid:25)(cid:25) (cid:25)(cid:25) ममममििििणणणणपपपपाााालललल एएएएककककेेेेडडडडममममीीीी ऑऑऑऑफफफफ हहहहााााययययरररर एएएएजजजजककुुककुु ेेेेशशशशनननन,,,, ममममििििणणणणपपपपाााालललल,,,, ककककननननााााटट(cid:25)(cid:25)टट(cid:25)(cid:25) कककक
((((पपपपननैैननैै ःःःः AAAAAAAAAAAAJJJJNNNN0000000077778888QQQQ)))) नामक संगठन को ििििननननधधधधाााारर(cid:25)(cid:25)रर(cid:25)(cid:25) णणणण ववववषषषष (cid:25)(cid:25) (cid:25)(cid:25) 2222000011115555----11116666 औऔऔऔरररर इइइइसससससससस ेे ेे आआआआगगगगे े े े कककक1111 अअअअववववििििधधधध ककककेेेे ििििललललएएएए क34 सरकार (cid:23)ारा
िन5न िलिखत शत7 के अधीन ‘‘‘‘ििििवववव3333ििििवववव4444ााााललललयययय,,,, ककककॉॉॉॉललललजजेेजजेे ययययाााा अअअअ6666यययय सससस(cid:14)(cid:14)ंं(cid:14)(cid:14)ंं थथथथाााानननन’’’’ क(cid:17) 8ेणी म3 अनमु ो(cid:4)दत (cid:4)कया जाता ह,ै नामत:-
(i) अनुमो(cid:4)दत संगठन को दी गई रािश का 1योग, वै:ािनक अनुसंधान करने के िलए (cid:4)कया जाएगा;
(ii) अनमु ो(cid:4)दत संगठन अपन ेसकं ाय सद;य< या नामां(cid:4)कत िव=ा>थ(cid:11)य< के मा?यम से वै:ािनक अनसु ंधान करेगा;
(iii) अनुमो(cid:4)दत संगठन वै:ािनक अनुसंधान के िलए इसके (cid:23)ारा 1ाA त रािश के संबंध म 3 अअअअललललगगगग ललललखखेेखखेे ाााा बबबबििििहहहहययययाााा ंंंं रखेगा िजनम 3
अनसु ंधान करने के िलए 1यु!त रािश दशा(cid:11)ई गई हो, ऐसी खाता बिहय< क(cid:17) उ! त अिधिनयम क(cid:17) धारा 288 क(cid:17) उप धारा (2)
के ;प Fट ीकरण म 3 यथा प+रभािषत (cid:4)कसी लेखाकार स े लेखा परीJा कराएगा और उ! त अिधिनयम क(cid:17) धारा 139 क(cid:17)
उपधारा (1) के अंतग(cid:11)त आय िववरणी 1;त तु करन े क(cid:17) िनयत ितिथ तक ऐस े लेखाकार (cid:23)ारा िविधवत सLय ािपत एवं
ह;त ाJ+रत लेखा परीJा +रपोट(cid:11) मामल ेम 3JेMािधकार रखने वाल ेआयकर आयु! त अथवा आयकर िनदेशक को 1; तुत करेगा;
3184 GI/2019 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(ii)]
(iv) अनमु ो(cid:4)दत संगठन वै:ािनक अनसु ंधान के िलए 1ाA त दान तथा 1यु! त रािश का अलग िववरण रखेगा और इस 1कार के
दान का 1योग िवशेष Nप स े वै:ािनक शोध के िलए ही (cid:4)कया जाएगा तथा उपयु(cid:11)!त लखे ा परीJा +रपोट(cid:11) के साथ लखे ा
परीJक (cid:23)ारा िविधवत सLय ािपत ऐस ेिववरण क(cid:17) 1ित 1;त ुत करेगा।
(vvvv)))) अअअअननननममममुुुु ोोोो8888ददददतततत ससससगगंंगगंं ठठठठनननन ;;;;ाााारररराााा अअअअििििधधधधििििननननययययमममम कककक1111 धधधधाााारररराााा 33335555 कककक1111 उउउउपपपप----धधधधाााारररराााा ((((1111)))) ककककेेेे खखखख@@@@डडडड ((((iiiiiiii)))) ककककेेेे ततततहहहहतततत (cid:20)(cid:20)(cid:20)(cid:20)ााााAAAA ददददााााननननBBBB ककककाााा (cid:20)(cid:20)(cid:20)(cid:20)ययययोोोोगगगग अअअअनननन6666यययय CCCCपपपप
सससस ेे ेे ककककेेेेववववलललल (cid:20)(cid:20)(cid:20)(cid:20)ममममखखुुखखुु ववववDDैैDDैै ााााििििननननकककक अअअअननननससससुुुु धधंंधधंं ााााननननBBBB हहहहततेेततेे ुु ुु 8888ककककययययाााा जजजजााााएएएएगगगगाााा नननन 8888कककक,,,, अअअअ(cid:14)(cid:14)(cid:14)(cid:14)पपपपतततताााालललल ककककााााययययकककक(cid:25)(cid:25)(cid:25)(cid:25) ललललाााापपपपBBBB,,,, ममममररररीीीीजजजजBBBB ककककेेेे उउउउपपपपचचचचाााारररर सससस ेेेे ससससबबंंबबंं ििंंििंं धधधधतततत
ककककााााययययकककक(cid:25)(cid:25)(cid:25)(cid:25) ललललाााापपपपBBBB,,,, ससससााााममममाााा6666यययय शशशशििैैििैै(cid:21)(cid:21)(cid:21)(cid:21)कककक ककककााााययययकककक(cid:25)(cid:25)(cid:25)(cid:25) ललललाााापपपपBBBB ((((अअअअननननससससुुुु धधंंधधंं ाााानननन ककककेेेे अअअअललललााााववववाााा)))),,,, ररररोोोोगगगग----ििििववववषषषषययययकककक ((((FFFFललललीीीीििििननननककककलललल)))) पपपपररररीीीी(cid:21)(cid:21)(cid:21)(cid:21)णणणण ककककााााययययकक(cid:25)(cid:25)कक(cid:25)(cid:25) ललललाााापपपपBBBB ययययाााा ससससगगंंगगंं ठठठठनननन
ककककेेेे 8888ककककससससीीीी अअअअ6666यययय उउउउGGGGेHेHेHेHयययय ककककेेेे ििििललललएएएए (cid:20)(cid:20)(cid:20)(cid:20)ययययोोोोगगगग 8888ककककययययाााा जजजजााााएएएएगगगगाााा।।।।
(vi) अनुमो(cid:4)दत संगठन धारा 139 क(cid:17) उप-धारा (1) के तहत आय िववरणी 1;तुत करने क(cid:17) दये तारीख तक आयकर आयOु
या आयकर िनदशे क को िनPिलिखत को समािहत करत ेQए िववरणी 1;तुत करेगा-
• पूव(cid:11) वष(cid:11) के दौरान इसके (cid:23)ारा (cid:4)कए गए अनसु ंधान काय(cid:11) पर िव;तृत नोट;
• वष(cid:11) के दौरान राTीय या अंतराT(cid:11) ीय पिMकाU (जनल(cid:11) ) म 31कािशत अनसु ंधान काय7 का साराशं ;
• वष(cid:11) के दौरान, (cid:4)कसी पेट3ट या अVय समान अिधकार के िलए 1युO या पंजीकृत;
• आगामी वष(cid:11) के दौरान (cid:4)कए जाने वाल े अनुसंधान प+रयोजनाU का कायW(cid:11) म और ऐसे काय(cid:11)Wम के िलए िवXीय
आबंटन।
2. क34 सरकार यह अनमु ोदन वापस ले लेगी य(cid:4)द अनमु ो(cid:4)दत सगं ठन:-
(क) पैराZाफ 1 के उप-पैराZाफ (iii) म3 यथा उि(cid:6)ल िखत अअअअललललगगगग ललललेखेखेखेखाााा बबबबििििहहहहययययाााा ंंंंरखन ेम 3असफल रहता ह;ै अथवा
(ख) पैराZाफ 1 के उप-पैराZाफ (iii) म3 यथा उि(cid:6)ल िखत अपनी लेखा परीJा +रपोट(cid:11) 1; तुत करने म3 असफल रहता ह;ै अथवा
(ग) परै ाZाफ 1 के उप-पैराZाफ (iv) म3 यथा उि(cid:6)ल िखत व:ै ािनक अनुसधं ान के िलए 1ाAत दान एवं 1यु! त धनरािश का
िववरण 1;त ुत करन ेम3 असफल रहता ह;ै अथवा
(घ) अपने अनसु ंधान काय(cid:11)कलाप< को करना बंद कर दते ा ह ै अथवा इसके अनसु ंधान काय(cid:11)कलाप< को वा; तिवक नह] पाया
जाता ह;ै अथवा
(ड.) उ!त िनयमावली के िनयम 5ग और 5ड. के साथ प+ठत उ! त अिधिनयम क(cid:17) धारा 35 क(cid:17) उपधारा (1) के खंड (ii) के
1ावधान< के अनNु प नह] ह ैतथा उनका पालन नह] करता ह।ै
[अिधसूचना स.ं 48/2019/फा. सं. 203/20/2014-आ.क.िन.- (भाग)]
II
राजाराजे_री आर., अवर सिचव
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 26th of June, 2019
S.O. 2195(E).—It is hereby notified for general information that the organization M/s. Manipal Academy of
Higher Education, Manipal,Karnataka (PAN:- AAAJN0078Q) 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 2015-16 and onwards in 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 to undertake scientific research;¹Hkkx IIµ[k.M 3(ii)] Hkkjr dk jkti=k % vlk/kj.k 3
(ii) The approved organization shall carry out scientific research through its faculty members or 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, such donations shall be used exclusively for core scientific research and a copy of such
statement duly certified by the auditor shall accompany the report of audit referred to above.
(v) Donations being received by the approved organization under clause (ii) of sub-section (1) of section 35 of
the Act, shall be used exclusively for core scientific research only and not for hospital activities, activities
related to treatment of patients, general educational activities (other than research), clinical trial activities
or any other object of the organization.
(vi) 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
(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 5E of the said Rules.
[Notification No. 48/2019/F.No. 203/20/2014/ITA-II(part)]
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.