The Central Government, on Friday notified International Crops Research Institute for the Semi-Arid Tropics (‘ICRISAT’) as an eligible Scientific Research Association for the purpose of section 35(1)(ii) of the Income Tax Act, 1961.
Section 35 was introduced with a view to encourage investment in scientific research in the country. The provision grants tax benefits on expenditure towards scientific research.
ICRISAT is the only research Center in the world serving the semi-arid tropics, together with its partners. The Institute conducts research on five highly nutritious, drought-tolerant crops – chickpea, pigeonpea, pearl millet, sorghum and groundnut.
As per the notification, the Institute can enjoy tax exemption from the year 1017-18 subject to the following conditions, (i) The sole objective of ‘ICRISAT’ shall be to undertake scientific research; (ii) It shall carry out scientific research by itself; (iii) It shall maintain separate books of accounts for its activities and operations performed by it through grants received u/s.35(1)(ii) of the Act. ‘ICRISAT’ 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 competent officer and., (iv) It shall maintain a separate statement of donations received and amounts applied for scientific research for ‘ICRISAT’ and a copy of such statement duly certified by the auditor shall accompany the report of audit.
