Approval under section 35(1)(iii) grants institution tax recognition subject to annual reporting, audited accounts, and renewal conditions. Approval under section 35(1)(iii) recognises the institution as eligible for research-related tax provisions subject to compliance: maintain separate research accounts; file annual returns of research activities by 31 May; submit audited annual accounts, income and expenditure statements, and balance sheet to the prescribed authority, the Central Board of Direct Taxes, and the concerned Commissioner by 30 June; and apply for approval renewal to the Central Board three months before expiry, with late applications liable to rejection.