CBDT vide Notification No. 23/2023 in S.O. 1831(E) dated 21st April 2023 approves ‘National Institute of Design, Ahmedabad (PAN: AAATN1137D)’ under the category of ‘University, College or other institution’ for Scientific Research for the purposes of clause (ii) 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.
A donor is entitled to claim a deduction equal to the amount of contribution to a university, college or other institution approved under section 35(1)(ii) for carrying out scientific research activities. The deduction is allowed where the taxpayer does not carry on the research himself but contributes to outsiders for carrying out research.
Earlier a weighted deduction of 175% of the amount of contribution was allowed to the donor for making a contribution to an institution approved under section 35(1)(ii). However, Finance Act, 2015 has phased out the weighted deduction from FY 2017-18 and from FY 2020-21 (AY 2021-22) the deduction is limited to 100% of the amount of contribution.
Read the full text of Notification No. 23/2023 dated 21.04.2023 on Notifying National Institute of Design u/s 35(1)(ii)
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 21st April, 2023
S.O. 1831(E).—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 ‘National Institute of Design, Ahmedabad (PAN: AAATN1137D)’ under the category of ‘University, College or Other Institution’ for ‘Scientific Research’ for the purposes of clause (ii) 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 2023-24) and accordingly shall be applicable for Assessment Years 2024-2025 to 2028-2029.
[Notification No. 23/2023/F. No. 203/07/2022/ITA-II]
CASTRO JAYAPRAKASH T., Under Secy
Explanatory Memorandum : It is certified that no person is being adversely affected by granting retrospective effect to this notification.
Download CBDT Notification No. 23/2023 dated 21.04.2023 on Notifying National Institute of Design u/s 35 in PDF format
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