CBDT vide Notification No. 33/2022 dated 19th April, 2022 in S.O. 1875(E) notified the Sri Sharada Institute of Indian Management Research Foundation Trust, New Delhi having PAN: AAJTS0088H for the purposes of section 35(1)(iii) of the Income-tax Act, 1961 (‘Act’) read with rules 5C and 5E of the Income-tax Rules, 1962.
Section 35(1)(iii) provides for income-tax deduction for any sum paid to-
(i) a research association which has as its object the undertaking of research in social science or
(ii) statistical research or
(iii) a university, college or
(iv) other institution
to be used for research in social science or statistical research and such association, university, college or other institution is approved and notified by the Central Government.
The deduction is available equal to the amount of contribution paid to such association or institution to the contributor from his business income. In other words, contribution to an institution notified under section 35(1)(iii) is eligible for a 100% deduction effective from the financial year 2017-18 or assessment year 2018-19.
Prior to AY 2018-19, a weighted deduction of 125% of the amount of contribution was allowed under this clause. From AY 2018-19, deduction under this clause is restricted to 100% of the amount of contribution.
In this context, the government has notified Sri Sharada Institute of Indian Management Research Foundation Trust, New Delhi, as ‘other Institution’ 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 shall apply with effect from the Previous Year 2022-23 and accordingly shall be applicable for Assessment Years 2023-2024 to 2027-2028.
Rule 5C prescribes the guidelines, form and manner in respect of approval under clause (ii) and clause (iii) of sub-section (1) of section 35 whereas Rule 5E prescribes the conditions subject to which approval is being granted to a University, College or other Institution under clause (ii) and clause (iii) of sub-section (1) of section 35.
Read the full text of CBDT Notification No. 33/2022 dated 19.04.2022 on Notifying Sri Sharada Institute of Indian Management Research Foundation u/s 35(1)(iii)
MINISTRY OF OF FINANCE
(DEPARTMENT OF REVENUE)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 19th April, 2022
INCOME – TAX
S.O. 1875(E).—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 ‘Sri Sharada Institute of Indian Management Research Foundation Trust, New Delhi, (PAN: AAJTS0088H)’ as ‘other Institution’ 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.
2. 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.
[Notification No. 33 /2022/F. No. 203/06/2021/ITA-II]
RAVINDER MAINI, Director
Explanatory Memorandum : It is certified that no person is being adversely affected by granting retrospective effect to this notification.
Download CBDT Notification No. 33/2022 dated 19.04.2022 on Notifying Notifying Sri Sharada Institute of Indian Management Research Foundation u/s 35(1)(iii) in PDF format
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