Krea University Eligible for Income Tax Deduction u/s 35(1): CBDT [Read Notification]

The Central Board of Direct Taxes ( CBDT ) has notified the income tax exemption to the Krea University under section 35(1) of the Income Tax Act, 1961.

Krea University is an Indian state private university located in Sri City, Andhra Pradesh. The liberal institution is backed by IFMR and focuses on interwoven learning. It was founded in 2018 by a team of academicians and industrialists.

A notification issued by the CBDT on Monday stated that “In exercise of the powers conferred by clause (iii) 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 ‘Krea University, Sricity, Chittoor, A.P. (PAN: AAFAK4100P)’ under the category of ‘University, College or other institution’ for research in ‘Social science or Statistical research’ for the purposes of clause (iii) of sub-section (1) of section 35 of the Income-tax Act, 1961 read with rules 5C and 5E of the Income-tax Rules, 1962.”

“This Notification shall apply with effect from the date of publication in the Official Gazette (i.e. from the Previous Year 2022-23) and accordingly shall be applicable for Assessment Years 2023-2024 to 2027-2028,” the Notification said.

As per section 35(1) of the Income Tax Act, 1961, a weighted deduction of 175% is also allowed for contributions to organizations approved under section 35(1) (ii) (a scientific research institute or a university, college or other institution) specifically for "scientific research," and for contributions made under section 35(1) (iii).

To Read the full text of the Notification CLICK HERE

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