Rule 5D - Conditions subject to which approval is to be granted to a research association under clause (ii) or clause (iii) of sub-section (1) of section 35.

Approval conditions for research associations require audited accounts, certified donations statements, and detailed research reporting to tax authorities.

Conditions for approval require the research association's sole object to be scientific, social science, or statistical research carried out by the association; maintenance of books of account, audited by a prescribed accountant, with the audit report and an auditor certified statement of donations and amounts applied furnished to the tax authority by the return due date; and a statement on prior and proposed research, publications, patents, and financial allocations. The tax authority may report non compliance, cessation of genuine activity, or failure to furnish required documents to the Central Government within six months of the return due date.