Tax exemption for research institutions requires exclusive fund use for social science research and annual reporting. The Management Development Institute, New Delhi, has been approved under clause (iii) of sub section (1) of section 35 of the Income tax Act to receive funds under the tax exemption framework for promotion of social science research, subject to conditions: exclusive use for research, maintenance of separate accounts for exempt funds, and annual reporting to the Indian Council of Social Science Research on funds collected and their utilisation.