Those scientific research association or organization which has objective of carrying out the scientific research or social science research, can be approved under section 35(1)(ii) and section 35(1)(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. A weighted deduction of 175% is also allowed for contributions to organizations approved under section 35(1) (ii) (a scientific research institute or a university, college or other institution) specifically for “scientific research,” and for contributions made under section 35(1) (iii) specifically for “research in social science or statistical research.”
THE APPLICATION AND ITS ENCLOSURE: –The Income Tax Act contains provisions permitting donors to deduct contributions. 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 assessee 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,
- By a scientific research association – Form 3CF-I
- By a university, college or other institution – Form 3CF-II