Conditions for claiming a deduction for expenditure on scientific research by way of a contribution to a Research Association under section 45(4).

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....arch activity by itself. Mandatory compliance framework • Maintained Books of Account • Applies to associations seeking approval under section 45(4)(b), shall • (a) maintain books of account; • (b) get such books audited by an accountant as defined in the section 515(3)(b); and • (c) furnish the report of such audit duly signed and • verified by such accountant to the Commissioner of Income-tax having jurisdiction over the research association, • by the due date of furnishing the return of income under section 263(1). • Separate tracking of donations • Maintain a separate statement of • donations rec....

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....5); or • (d) has ceased to carry on its research activities, or its activities are not genuine; or • (e) is not fulfilling the conditions subject to which approval was granted to it, • he may, after making appropriate enquiries, furnish a report on the circumstances referred to in clauses (a) to (e), to the Central Government within six months from the date of furnishing the return of income under section 263(1). Conditions subject to which approval is to be granted to a University, college or other institution for deduction for expenditure on scientific research under section 45(4) [ Rule 34 ] Sub-rule (1): Utilisation of funds The sum paid to a University, college or other ins....

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....of such statement duly certified by the auditor shall accompany the report of audit. Sub-rule (5): Annual research reporting • The University, college or other institution shall, furnish a statement to the Commissioner of Income-tax containing- • (a) a detailed note on the research work undertaken by it during the tax year; • (b) a summary of research articles published in national or international journals during the tax year; • (c) any patent or other similar rights applied for or registered during the tax year; • (d) the programme of research projects to be undertaken during the forthcoming tax year and the financial allocation for such programme. • Such sta....