Tax exemption recognition for charitable purpose: club notified subject to conditions on income application, investments, business accounting.
Notification under Section 10(23) recognises the Kodaikanal Boat and Rowing Club for income-tax exemption subject to conditions: income must be applied or accumulated solely for the club's objects; investments must follow the permitted modes except certain voluntary contributions held in tangible form; business income is excluded unless incidental and kept in separate books; returns must be regularly filed; and on dissolution surplus assets must transfer to a similarly purposed charitable organisation.

Tax approval for research institutions requires audit, certified donation accounting and may be withdrawn for noncompliance.
Approval is granted to the National Institute of Immunology, New Delhi, as an approved organization for purposes of Section 35(1)(ii) in the category of other Institution, effective 1-4-2004, subject to conditions: sums must be used for scientific research; research carried out by faculty or enrolled students; books of account maintained and audited with the audit report furnished to the tax authority by the return due date; and a separate auditor certified statement of donations and amounts applied for research must accompany the audit report. The Central Government may withdraw approval for failures in these respects or if research is not genuine or compliant.

Scientific research association approval under Section 35 conditions research eligibility on audit, accounts and donations reporting compliance.
Approval is granted to The South India Textile Research Association as a scientific research association effective 1 4 2002 subject to conditions: sole objective to undertake scientific research; conduct research itself; maintain books of account and furnish an auditor's report to the tax authority by the return due date; and maintain a separate auditor certified statement of donations received and amounts applied for scientific research to accompany the audit report. The Central Government may withdraw approval for failures to maintain books, furnish reports, cease genuine research, or otherwise not conform to statutory requirements.

Approval under Section 35(1)(ii) ties research-institution tax recognition to research activity, audit and reporting compliance.
Approval recognizes Indian Register of Shipping, Mumbai as an "other Institution" partly engaged in scientific research under Section 35(1)(ii), subject to conditions: sums must be used for scientific research; research to be carried out by faculty or enrolled students; books of account must be maintained and audited by a qualified accountant with the audit report furnished to the tax authority by the return due date; and a separate auditor-certified statement of donations received and amounts applied to research must accompany the audit report. Approval may be withdrawn for failures in accounting, reporting, genuine research activity or compliance.

Designation of TDS Commissioners and territorial jurisdiction clarified; powers for deduction and collection under Chapter XVII assigned.
The Board, under sub-sections (1) and (2) of section 120, substitutes the opening paragraph and Schedule of S.O. 1386(E) to designate specific Commissioner of Income-tax (TDS) offices, define their headquarters and territorial jurisdictions, identify classes of persons (non-company residents, non-company businesses, companies, and other withholding/collecting persons) and assign to those Commissioners all powers and functions for deduction and collection of tax under Chapter XVII, with related powers under Chapters XIII, XXI, XXII and XXIII, subject to specified exclusions assigned to Director of Income-tax (International Taxation).

Valuation of perquisites clarified: new rules set standards for accommodation, motor car, travel, gifts and club benefits.
Amendments revise valuation of perquisites: substituted accommodation table (effective 1 April 2006) prescribes salary linked or actual charge based valuation and furniture uplift; a motor car table (effective 1 April 2008) defines valuation by engine capacity and use with nil valuation for wholly official use subject to documentary proof and allowance for higher official use claims; additional rules value employer provided transport, holidays, free food, gifts, credit card expenses and club membership at actual employer expenditure reduced by employee contributions, with specified de minimis exceptions and record keeping requirements; residual benefits are valued at arm's length cost.

Allowance nomenclature change removes 'coal' from specified allowance name, amending rule 2BB under Income tax Rules.
The notification amends the Income tax Rules, 1962 by omitting the word coal from the name of the allowance appearing against serial number 12 in the Table in sub rule (2) of rule 2BB; the amendment is effected under section 295 read with sub clause (ii) of clause (14) of section 10 of the Income tax Act, 1961 and comes into force on publication in the Official Gazette.

Scientific research association approval requires direct research, audited books, certified donation statements and continued compliance.
Approval under the Income-tax Act has been granted to Sardar Patel Renewable Energy Research Institute as a scientific research association, subject to conditions requiring that its sole objective is scientific research, that it carry out research itself, maintain audited books of account, and furnish a separately certified statement of donations and amounts applied for research to the tax authorities by the due date for filing returns; the Central Government may withdraw approval for specified failures of recordkeeping, reporting, genuine research activity, or conformity with governing rules.

Approval under Section 35(1)(ii): donations to the trust must fund scientific research and meet audit and reporting requirements.
Approval is granted to The Baba Jaswant Singh Trust as an "other Institution" partly engaged in research, subject to conditions that payments be used for scientific research; research be conducted by faculty or enrolled students; books of account be maintained and audited by a qualified accountant with the audit report filed by the tax return due date; and a separate auditor-certified statement of donations received and amounts applied for scientific research be maintained and submitted with the audit report. The Central Government may withdraw approval for failures to comply with these requirements or if research is not genuine.

Approval under Section 35(1)(ii) confirms research exemption status subject to audit, recordkeeping, and withdrawal grounds.
The Institute of Pulmocare & Research, Kolkata is approved as an other Institution under clause (ii) of sub-section (1) of Section 35 with effect from 1-4-2007, subject to conditions: sums must be used for scientific research; research must be carried out through faculty or enrolled students; books of account must be maintained and audited by a qualified accountant with the audit report furnished by the income-tax return due date; and a separate, auditor-certified statement of donations received and amounts applied for research must be maintained. Approval may be withdrawn for failures in recordkeeping, audit reporting, donation statements, genuine research activity, or compliance with the statutory provisions and Rules 5C and 5E.

Scientific research association approval contingent on direct research, audited accounts and certified donation statements.
Northern India Textile Research Association is approved as a scientific research association from 1 April 2000, subject to conditions: its sole objective must be scientific research conducted by the organization itself; it must maintain books of account and obtain an audit by a defined accountant, furnishing the audit report by the income tax return due date; and it must maintain an auditor certified separate statement of donations received and amounts applied for scientific research.

Research exemption approval: recognition subject to utilization, audit and reporting requirements, and possible withdrawal for noncompliance.
Approval granted to Hari Shankar Singhania Elastromter & Tyre Research Institute, Rajasthan as an other Institution partly engaged in scientific research from 1 April 2004, subject to conditions: utilization of sums for scientific research; research conducted by faculty or enrolled students; maintenance of books of account and audit by a qualified accountant with the audit report filed by the income tax return due date; and maintenance of an auditor certified statement of donations and amounts applied for research. Approval may be withdrawn for failures to maintain accounts, furnish required reports, or for cessation or non genuine research activities.

Fair market value of employee share options determines fringe benefit tax liability on vesting under prescribed valuation rules.
Rule 40C prescribes that fair market value of an equity share for fringe benefit tax is determined on the option vesting date: for listed shares it is the average of opening and closing prices on that date (using the exchange with highest trading volume where multiple listings exist, or the nearest preceding closing price if no trading occurs); for unlisted shares it is the value determined by a category I merchant banker on the specified date. Definitions specify opening/closing price, merchant banker, recognised stock exchange, specified date and equity share.

Section 35AC exemption extended for home for spastics project; scheme eligibility renewed but prior year certificate not issued.
Notification notifies the Handicapped Children's Parents Association project "Construction, aids/applications/equipments, vans, furnishing and running of home for spastics" as an eligible project or scheme for a further three-year period beginning with financial year 2006-2007, without change in the approved cost of Rs.245 lakh; however, since financial year 2006-07 has elapsed, no certificate for exemption of donations shall be issued for that year.

Exemption under section 35AC extended for charitable ambulance and welfare project and project cost ceiling amended.
Notification extends the qualifying charitable project for purchase of ambulances, medical instruments and welfare activities by Shree Baldevdas Charitable Trust for three more years beginning with financial year 2007 2008 and amends the previously notified maximum project cost ceiling upward while specifying an accompanying corpus fund, following a recommendation of the National Committee for the Promotion of Social and Economic Welfare and exercising powers under the Income-tax Act.

Exemption under section 35AC: extension of eligibility for Amar Jyoti Charitable Trust's disability rehabilitation project for three years.
The Central Government notifies expansion of Amar Jyoti Charitable Trust's scheme covering construction, library books, equipment, mobile aids, learning materials, furnishing and rehabilitation activities for persons with disability as an eligible project for a further three years beginning with financial year 2007-2008, following a recommendation by the National Committee and without change in the approved project cost.

Exemption under section 35AC: eligibility for hospital expansion project extended for additional financial years by governmental notification.
The Central Government notified continuation of the project "Expansion of Mahatma Gandhi Hospital" by India Education Trust as an eligible project under the Exemption provision of the Income-tax Act, extending its eligibility beginning with the financial year 2007-2008 after a National Committee recommendation; the notification preserves the approved project cost of Rs. 1500 lakh and confirms no change to that approved cost.

Tax exemption extended for medical centre project, allowing continued eligible project status by foundation under law
Notification re notifies the project "Construction, equipments, furnishing and running of Smt. Lakshmi Shah Rural Medical and Research Centre" by Smt. Lakshmi and Shri Jankilal Shah Foundation as an eligible project or scheme under section 35AC for a further period of three years beginning with financial year 2007 2008, without any change in the approved cost of Rs. Two crore, pursuant to a recommendation by the National Committee for Promotion of Social and Economic Welfare under rule 11M.

Exemption under section 35AC extended eligibility and amended project cost for a charitable eye hospital project.
The Central Government, under the Explanation to section 35AC, notified continuation of the Sri Sankara Deva Nethralya Phase I Expansion Project as an eligible scheme for three more years beginning with financial year 2007 2008, following a recommendation by the National Committee that the project is being executed properly; the notification also amends the original notification to increase the maximum sanctioned project cost in the eligibility table.

Exemption under section 35AC extended for specified vocational training scheme; certificate not issued for elapsed financial year
The Central Government, under the income tax exemption provision corresponding to section 35AC, notifies extension of eligibility for the project "Running of Vocational Training Centre for economically weaker section of society" by Chittarnajan Seva Pratisthan for a further three-year period beginning with the financial year 2006-2007, with the approved project cost and corpus fund unchanged. Because that financial year has already elapsed, no certificate for exemption of donations under the provision shall be issued for that year.