35 AC 1&2 Registration
Income Tax: Deduction U/s 35 AC Purpose of 35 AC NGOs can register itself u/s 35AC from the Central Government of India. Potential donors get 100% exemption for the amount donated towards 35AC. How is it import ant to NGOs and Corporates Under section 35AC, organizations having income from business or profession can get 100 per cent deduction. Contributions made to a project/scheme notified as an eligible project or scheme for the purpose of section 35AC of the Income Tax Act, would entitle 100% deduction from income to tax payers (companies, business persons, etc.), who donate any sum to NGOs for eligible projects.
35(1-2) REGISTRATION
Any scientific research association / organization which has its objects, carrying out the scientific research or social science research or social science research can be approved under section 35 I(ii) and 35I(iii) in accordance with the guidelines and other conditions as may be notified in the official gazette of the central government. The donor will receive 175% weighted deduction on the donated amount as per amendment by the Finance Act 2010.
Application
The application for approval under section 35 1 (ii) / 35 1 (iii) of IT Act 1961 may be submitted to the CIT/ DIT- IT of the jurisdiction of the assessed association along with following information in prescribed form.
- List of assets / facilities owned used for scientific research / Social science research by the applicant,
- Details of past research projects undertaken by the applicant, such as research projects completed/ underway/ any publication of research projects,
- Past research activities such as whether any new product/process developed, approved, any product of import substitution,
- Patents filed and details of the filing,
- Whether any commercialization carried out of any such product/ process,
- Earnings from such patents etc
- Details of conferences/ seminars etc. held
- Proposed research project to be undertaken,
- List of the donors and amount received as donations,
- Amount utilized in such research activities,
Need Help To Grow Your Business?
Investment Expert will help you start your own company.
Get In TouchInnovative Tools for Investor
We employ a long-established strategy, sector-focused investing across all of our markets globally...
Learn More
