Tax exemption under section 35(1)(iii) requires annual reporting of funds by the approved research institution for compliance. The Centre for Studies in Social Sciences, Calcutta has been approved by the prescribed authority under section 35(1)(iii) to receive research-related grants; the Centre must submit an annual report to the Indian Council of Social Science Research detailing amounts received under the approval and how they were utilised, and the notification specifies the operative date of the approval.