Rule 6AAG - Conditions subject to which a skill development project is to be notified under section 35CCD.

Skill development project notification requires separate accounts, audited reports, eligibility and reporting obligations with compliance consequences.

Companies notifying a skill development project under section 35CCD must maintain separate books of account for each project, obtain an audit addressing true and fair view, genuineness and compliance, and file audited accounts, the audit report and deduction claimed with the return. Eligible expenses (except land or building) incurred wholly and exclusively for the notified project qualify for deduction, but reimbursed amounts are excluded; training of existing employees commencing more than six months after recruitment is ineligible. Regulatory authorities may investigate noncompliance and refer matters to the CBDT.