Exemption under section 35AC extended for watershed and village development scheme, enabling continued tax deductible contributions. Exemption under section 35AC is specified for the watershed development and integrated village development scheme in Konkan and Panvel/Pen talukas; the National Committee recommended, and the Central Government approved, a further three year specification of the same project as eligible under the Explanation to section 35AC, enabling continued application of the section 35AC exemption mechanism for that period.