Approval under section 35(1)(ii) grants research institutions tax recognition subject to accounting, reporting and renewal compliance requirements. Approval under section 35(1)(ii) recognises the Centre for Earth Science Studies, Trivandrum as an approved research institution conditioned on maintaining a separate account for research receipts, furnishing annual scientific-activity returns to the prescribed authority, submitting audited annual accounts and balance sheet to the authority and the tax commissioner, and applying for renewal in advance of approval expiry to avoid rejection.