Approval as research institution under section 35(1)(ii) requires separate research accounts, annual returns, and audited accounts. Approval is granted to Non Ferrous Materials Technology Development Centre (NFTDC) as an approved institution under clause (ii) of subsection (1) of section 35 of the Income tax Act, subject to maintaining a separate account for research receipts, furnishing annual research activity returns to the Secretary, Department of Scientific and Industrial Research by 31 May, and submitting audited annual accounts to specified tax and research authorities by 30 June. The approval is time limited and the organisation must follow prescribed procedures to apply for extension, including submission through the territorial tax authority and direct copies to the Department of Scientific and Industrial Research.