Deduction under section 35AC: literacy One Teacher Schools scheme retained as eligible and project cost increased. The Central Government specifies the literacy project run by Friends of the Tribal Society-2890 One Teacher Schools in tribal areas of six States-as an eligible project under section 35AC for a further three year period commencing financial year 2014 15, and amends the notified Table to substitute the previously allowed maximum cost with an enhanced project cost for purposes of deduction.