Approval under Section 35(1)(ii) recognises tax treatment for research donations subject to audit and utilisation conditions. Approval under Section 35(1)(ii) effective 1.4.2003 classifies Indian National Science Academy as an 'other Institution, partly engaged in research' subject to conditions: sums must be used for scientific research; research must be carried out by faculty or enrolled students; books of account must be maintained and audited by a qualified accountant with the audit report filed by the income-tax return due date; and a separate auditor-certified statement of donations and sums applied to research must accompany the audit report. The Central Government may withdraw approval for specified failures or cessation of genuine research.