The Central Board of Direct Taxes (CBDT) approved the Income Tax Exemption to Patanjali Research Foundation Trust based in Haridwar.
The government empowered under clauses (ii) of sub-section (1) of section 35 of the Income-tax Act, 1961 read with rules 5C and 5D of the Income-tax Rules, 1962, approved M/s Patanjali Research Foundation Trust, Haridwar under the category “Research Association” for Scientific Research for the purposes of clauses (ii) of sub-section (1) of section 35 of the Income-tax Act, 1961 read with rules 5C and 5D of the Income-tax Rules, 1962.
The Notification shall apply with effect from the 12th July 2021 i.e from the Previous Year 2021-2022, and accordingly shall be applicable for Assessment Year(s) 2022-23 to 2027-28.
Section 35 of the Income Tax Act allows deduction of expenditure “an amount equal to one-and-one-half times of any sum paid to a research association which has as its object the undertaking of scientific research or to a university, college or other institution to be used for scientific research.”
section 35 (1)(ii) of the Income Tax Act in respect of expenditure on scientific research, the deductions of an amount equal to one and one-half times of any sum paid to a research association which has as its object the undertaking of scientific research or to a university, college or other institution to be used for scientific research shall be allowed. Provided that such association, university, college, or other institution for the purposes of this clause is for the time being approved, in accordance with the guidelines, in the manner and subject to such conditions as may be prescribed; and such association, university, college or other institution is specified as such, by notification in the Official Gazette, by the Central Government.
Rule 5C of Income Tax Rules 1962 prescribes the form and manner for the deduction.
Rule 5D prescribes conditions for approval. For this, the sole object will be to undertake scientific research or research in social science or statistical research. The research activity should be carried out by the research association itself. It will maintain books of account and get such books audited by an accountant as defined under the law and submitted to the Income Tax Department. It will maintain a separate statement of donations received and the amount applied for research.
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