What is notification u/s 35(1)(ii)/(iii)? How to apply by scientific research association, a university, college or other institutions? What is the use?
Every donors to a scientific research association, a university, college or other institutions is entitled to get deduction of one and one fourth times of the donations paid by them subject to conditions provided in the Act. They are:
The Institution must be notified and the use of donation must be for specified purpose
(i) The association, university, college or the institution, as the case may be, is notified by the Central Government for the purpose of clause (ii) or (iii) of sub-section (1) of section 35, and (ii) the institution etc. uses the donations for the research purposes. such as (ii) scientific research, (iii) deals with research in social science or statistical research.
To get the aforesaid benefit, the institution etc. has to made an application in Form no. 3CF to the Central Government for its notification in official gazette. The income of an institution notified under section 35(1)(ii) is also exempt from tax u/s 10(21) subject to fulfillment of conditions regarding application of its income for scientific research purposes; its accumulation and use u/s 11(2) and 11(3); and its investment as per modes prescribed u/s 11(5). If exemption is sought u/s 10(21) also, then, annexure to Form 3CF has also to be filled up by the assessee.
The application Form No. 3CF may be filled up
carefully, having regard to the provisions contained in section
35(1)(ii)/(iii), 11(2), 11(3) and 11(5). As the benefit is sought to
be given in respect of scientific research, research in social
science or statistical research activities, it has to be ascertained
whether research is the sole object or only one of the objects of
the university, association or institution. In case, research is
only one of the objects of the institution, then, it is incumbent on
the institution to maintain separate books of account and furnish
Income and Expenditure and Balance Sheet (Statement of Affairs) in
respect of research activities. Such accounts have to be audited by
an auditor, who should certify that expenditure incurred was for
Important points while filling up form No.
Taxation on Charitable Trust and NGO
What is approval u/s 80G(5)? Is it necessary for a charitable Institution? How to apply for it? What is the use of approval u/s 80G(5) for Charitable Trust, Charitable Society, Non Governmental Organizations (NGO), Section 25 Companies and other exempted institutions?