Executive Summary:
This notification announces the Central Government's approval of Ms. Charutar Arogya Mandal, Gujarat, as an institution engaged in research activities under Section 35 of the Income-tax Act, 1961, effective from the assessment year 2019-2020. The approval is subject to specific conditions regarding the use of funds, research activities, and reporting requirements. The notification also outlines conditions under which the approval can be withdrawn.
Key Points / Main Content:
Approval Details:
* Ms. Charutar Arogya Mandal, Gujarat (PAN: AAATC1264G) is approved as a research institution.
* Approval is granted under Section 35(1)(ii) of the Income-tax Act, 1961, read with Rules 5C and 5E of the Income-tax Rules, 1962.
* The approval is effective from the assessment year 2019-2020 onwards.
Conditions for Approval:
* Funds received must be used for scientific research.
* Scientific research must be conducted through faculty members or enrolled students.
* Separate books of account must be maintained for scientific research funds, audited by an accountant, and a report submitted to the Commissioner of Income-tax or Director of Income-tax by the due date of income return filing per Section 139(1) of the Income-tax Act, 1961.
* A separate statement of donations received and amounts applied for scientific research, certified by the auditor, must accompany the audit report.
* Donations received under Section 35(1)(ii) must be used exclusively for core scientific research and not for other activities.
* A detailed statement on research work, articles published, patents applied/registered, and future research plans with financial allocation must be furnished to the Commissioner of Income-tax or Director of Income-tax by the due date of income return filing under Section 139(1) of the Income-tax Act, 1961.
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 and their use.
* Ceases research activities or if research activities are not genuine.
* Fails to comply with Section 35(1)(ii) of the Income-tax Act, 1961, and related rules.
Impact Analysis:
Ms. Charutar Arogya Mandal, Gujarat:
* Impact: Approved as a research institution, enabling them to receive tax-deductible donations for scientific research.
* Action Required: Comply with all conditions, including maintaining accurate records, conducting research through qualified personnel, and submitting required reports and statements by specified deadlines.
Donors to Ms. Charutar Arogya Mandal, Gujarat:
* Impact: Donations to the organization for scientific research are eligible for tax deductions under Section 35(1)(ii) of the Income-tax Act, 1961.
* Action Required: Ensure that their donations are used exclusively for core scientific research purposes to qualify for tax deductions.
Commissioner of Income-tax or Director of Income-tax:
* Impact: Responsible for overseeing the organization's compliance with the conditions of approval.
* Action Required: Review audit reports and statements submitted by the organization and ensure adherence to Section 35 of the Income-tax Act, 1961 and related rules.
Central Board of Direct Taxes:
* Impact: Issuing the notification and responsible for monitoring compliance and potentially withdrawing approval if conditions are not met.
* Action Required: Monitor the organization's compliance with the conditions outlined in the notification and take appropriate action if violations occur.
Key Entities Referenced
Ms Charutar Arogya Mandal, Gujarat: An organization located in Gujarat that has been approved by the Central Government under the Incometax Act for research purposes.
Incometax Act, 1961: The primary legislation governing income tax in India, referenced in the context of approving the organization for tax benefits related to scientific research.
Incometax Rules, 1962: The rules framed under the Incometax Act, 1961, which provide detailed procedures and guidelines for implementing the provisions of the Act, specifically Rules 5C and 5E.
Central Board of Direct Taxes: A government body under the Department of Revenue, Ministry of Finance, responsible for the administration of direct taxes in India, and the issuing authority of the notification.
Ministry of Finance: The government ministry responsible for financial matters, including taxation, in India.
New Delhi: The location where the notification was issued.
Assessment year 20192020: The assessment year from which the approval is effective for the organization.
section 35 of the Incometax Act, 1961: Section of the Income Tax Act that allows for deductions for contributions to scientific research.
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PART II—Section 3—Sub-section (ii)
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धारा 35 क(cid:10) उपधारा (1) के खंड (ii) के .योजनाथ (cid:3) ममममससससैैैै सससस (cid:10)(cid:10) (cid:10)(cid:10) चचचचाााा(cid:12)(cid:12)(cid:12)(cid:12)ततततरररर आआआआररररोोोो(cid:16)(cid:16)(cid:16)(cid:16)यययय मममम(cid:18)(cid:18)(cid:18)(cid:18)डडडडलललल,,,, गगगगुजुजुजुजरररराााातततत,,,, ((((पपपपननैैननैै ःःःः AAAAAAAAAAAATTTTCCCC1111222266664444GGGG)))) नामक
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(i) अनमु ो(cid:25)दत संगठन को .द: रािश का उपयोग, वै;ािनक अनसु धं ान के िलए (cid:25)कया जाएगा।
(ii) अनमु ो(cid:25)दत संगठन अपन ेसंकाय सद<य= अथवा अपने पंजीकृत छा?= के मा5यम से वै;ािनक अनसु ंधान करेगा;
(iii) अनमु ो(cid:25)दत संगठन, वै;ािनक अनसु ंधान के िलए इसके (cid:19)ारा .ाA त रािश के संबधं म0 अअअअललललगगगग ललललखखेेखखेे ाााा बबबबििििहहहहययययाााांं ंं रखेगा िजनम 0
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(2) के <प Gट ीकरण, म0 यथा प(रभािषत (cid:25)कसी लेखाकार से लखे ा परीKा कराएगा और उ(cid:30) त अिधिनयम क(cid:10) धारा 139
क(cid:10) उपधारा (1) के अंतग(cid:3)त आय िववरणी .< ततु करन े क(cid:10) िनयत ितिथ तक ऐसे लेखाकार (cid:19)ारा िविधवत सL यािपत एव ं
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करेगा;
6715 GI/2018 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(ii)]
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केवल मलू भूत वै;ािनक अनसु धं ान के िलए (cid:25)कया जाएगा और उपयु(cid:3)(cid:30)त लेखा परीKा (रपोट(cid:3) के साथ लेखा परीKक (cid:19)ारा
िविधवत सLय ािपत ऐसे िववरण क(cid:10) .ित .<त ुत करेगा।
(v) अिधिनयम क(cid:10) धारा 35 क(cid:10) उपधारा (1) के खMड (ii) के तहत संगठन (cid:19)ारा .ाN (cid:25)कए गए दान का .योग केवल मलू भूत
वै;ािनक शोध के िलए ही (cid:25)कया जाएगा तथा अ<पताल क(cid:10) कार(cid:3)वाइय=, सामाOय शिै Kक गितिविधय= (शोध के अलावा)
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आयकर िनदशे क को एक Uयौरा .<तुत करेगा िजसम0 िनWिलिखत बात0 ह=गी:-
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• राZीय तथा अंतराZीय जन(cid:3)ल= म 0वष(cid:3) के दौरान, .कािशत शोध लेख= का सिं KN िववरण;
• वष(cid:3) के दौरान पंजीकृत कोई पेट0ट या उसके िलए लागू उस जसै ा अOय अिधकार;
• इस .कार के काय[(cid:3) म के िलए िव:ीय आबंटन तथा आगामी िव:ीय वष (cid:3) के दौरान (cid:25)कए जान े वाल े शोध
योजना\ का काय(cid:3)[म।
2. क01 सरकार यह अनमु ोदन वापस ले लेगी य(cid:25)द अनमु ो(cid:25)दत संगठन:-
(क) पैरा^ाफ 1 के उप-पैरा^ाफ (iii) म0 यथा उि‘ल िखत अअअअललललगगगग ललललखखेेखखेे ाााा बबबबििििहहहहययययाााा ंंंंरखन ेम 0असफल रहता ह;ै अथवा
(ख) पैरा^ाफ 1 के उप-पैरा^ाफ (iii) म0 यथा उि‘ल िखत अपनी लेखा परीKा (रपोट(cid:3) .< तुत करन ेम0 असफल रहता ह;ै अथवा
(ग) पैरा^ाफ 1 के उप-पैरा^ाफ (iv) म0 यथा उि‘ल िखत वै;ािनक अनुसधं ान के िलए .ाAत दान एवं .यु(cid:30) त धनरािश का
िववरण .<त ुत करन ेम0 असफल रहता ह;ै अथवा
(घ) अपने अनसु ंधान काय(cid:3) कलाप= को करना बंद कर देता ह ै अथवा इसके अनसु ंधान काय(cid:3) कलाप= को वा< तिवक नहR पाया
जाता ह;ै अथवा
(ड.) उ(cid:30)त िनयमावली के िनयम 5ग और 5ड. के साथ प(ठत उ(cid:30) त अिधिनयम क(cid:10) धारा 35 क(cid:10) उपधारा (1) के खंड (ii) के
.ावधान= के अनaु प नहR तथा उनका पालन नहR करता ह।ै
[अिधसूचना सं. 75/2018/F.No.203/26/2018/ITA-II]
राजराजे(cid:17)री आर., अवर सिचव,
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 31st October, 2018
S.O. 5759(E).—It is hereby notified for general information that the organization M/s Charutar Arogya
Mandal, Gujarat (PAN:- AAATC1264G) 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 onwards in the category of ‘University, College or other
Institution’, engaged in research activities, 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)º 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 account 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 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) 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. 75/2018/F.No.203/26/2018/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.