CBDT approves Income Tax Deduction to IIT Kharagpur and other two Institutions for Scientific Research u/s 35(1) of Income Tax Act [Read Order]

The Central Board of Direct Taxes ( CBDT ) has granted income tax deductions under Section 35 of the Income Tax Act, 1961, to specific institutions including IIT, Kharagpur engaged in scientific research under the category of ‘University, college or other institution’. This decision was communicated through notifications numbered 29, 30, and 31 of 2024, dated March 13, 2024.

The Section 35 of Income Tax Act provides income tax deduction to the institutions which conduct scientific research.

The institutions which go deductions through these notifications are :

1. ‘Indian Institute of Technology, Kharagpur
2. Sardar Vallabhbhai National Institute of Technology
3. National Forensic Sciences University, Gandhinagar

The 3 notifications combined states as follows “In exercise of the powers conferred by clause (ii) of sub-section (1) of section 35 of the Income-tax Act, 1961 ( 43 of 1961 ) read with Rules 5C and 5E of the Income-tax Rules, 1962, the Central Government hereby approves ‘Indian Institute of Technology, Kharagpur’ (PAN: AAAJI0323G),  ‘Sardar Vallabhbhai National Institute of Technology’, Surat ( PAN: AAAJS1184P ), ‘National Forensic Sciences University, Gandhinagar’ ( PAN: AAALN3742Q )  under the category of ‘University, college or other institution’ for ‘Scientific Research’ for the purposes of clause (ii) of subsection (1) of section 35 of the Income-tax Act, 1961 read with rules 5C and 5E of the Income-tax Rules, 1962.”

It has been clearly provided that no individual will be adversely impacted by the retrospective effect granted to this notification.

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates