Associations/institutions carrying out rural development programmes Guidelines for approval under section 35CCA of the Income-tax Act, 1961

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.... expenditure incurred by them on any approved programme of rural development. 2. With a view to giving a further impetus to the programme of rural development, section 35CCA has been inserted in the Income-tax Act, 1961, through the Finance Act, 1978. Section 35CCA provides for the deduction, in the computation of the taxable profits, of expenditure incurred by a taxpayer engaged in a business or profession by way of payment of any sum, to an association or institution having the object of undertaking any programme of rural development, to be used for the purposes of carrying out such programme. The deduction will, however, be admissible only in cases where the association or institution, as also the programme of rural development for wh....

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....l, State or Provincial Act. (iii) The activities of the association/institution are open to citizens of India without distinction of religion, caste, creed, race, lingual group, etc., and are not expressed to be for the benefit of any particular individual or community. (iv) The association or institution maintains regular accounts of its receipts and expenditure. (v) The instrument under which the association or institution is constituted does not, or the rules governing the association or institution do not, contain any provision for the transfer or application at any time of the whole or any part of the income or assets of the association or institution for any purpose other than a charitable purpose. (vi) The association/ins....