Contributions to Patanjali Research Foundation to be eligible for I-T aid

The Central Board of Direct Taxes (CBDT) has notified Patanjali Research Foundation Trust as a ‘research association’ for scientific analysis, implying donations to the Trust can be eligible for revenue tax deduction. The CBDT has granted the standing beneath Section 35(1)(ii) of the Income-tax Act for 5 years with impact from monetary 12 months 2021-22.
Section 35 of the Income-tax Act supplies for deduction of expenditure of an quantity equal to one-and-one-half occasions of any sum paid to a analysis affiliation which has as its object the endeavor of scientific analysis or to a college, school or different establishment for use for scientific analysis. A enterprise entity that pays any quantity to the Trust for scientific analysis shall be eligible to say the expense as deduction from enterprise revenue beneath Section 35, thereby decreasing their tax outgo.
A taxpayer is permitted to deduct any quantity paid to an ‘approved scientific research association’ for endeavor scientific analysis in computing the revenue beneath the pinnacle of enterprise and occupation.
The beforehand notified standing beneath Section 35 (1) was granted to Bennett University, Greater Noida, Uttar Pradesh beneath the class of ‘University, College or other institution’ for Scientific Research and Research in Social Science and Statistical Research on March 9, 2021. Before that, within the final one 12 months, related notified standing was granted to Institute of Pesticide Formulation Technology, Gurgaon, on January 28, 2020 and to Indian Institute of Technology (Indian School of Mines), Dhanbad on January 3, 2020.

Neha Malhotra, director, Nangia Andersen LLP, mentioned such provisions function tax incentives for spending on scientific analysis. “Tax breaks in the form of deduction of expenses incurred for specified purposes channelises the funds of the taxpayers in the desired area of investment, that is scientific research in this case. Such provisions serve as a tax incentive for the taxpayer spending on scientific research and source of funds for the research association.”