Research institution tax exemption requires use for scientific research, audited accounts and donation statements, non-compliance risks withdrawal. Approval of Indian Plywood Industries Research & Training Institute as an approved institution under clause (ii) of section 35(1) is effective from 1 April 2012; sums must be used for scientific research conducted by faculty or enrolled students. The institute must keep separate books for research receipts, obtain an audit by a qualified accountant and file the audit report with the tax authorities by the return due date, and maintain a certified statement of donations and amounts applied to research. Approval may be withdrawn for failures in recordkeeping, audit reporting, donation statement submission, cessation or insincerity of research activity, or noncompliance with the applicable statutory provisions.