Research institution approval under section 35(1)(ii) requires separate accounts, annual returns, and audited submissions for tax recognition. Approval under section 35(1)(ii) granted to Associated Electronic Research Foundation, New Delhi as an approved institution in the 'Association' category for other natural and applied sciences, subject to conditions: maintain a separate account for research receipts (excluding certain fields); furnish annual returns of research activities to the prescribed authority by 30 April each year; and submit audited annual accounts, income and expenditure statements and balance-sheet to the prescribed authority by 30 June each year with copies to the Commissioner of Income-tax. The approval is effective for a three-year period.