CBDT Notification Enables Tax Benefits Under Section 35
The Central Board of Direct Taxes (CBDT) has approved Gitarthganga Trust and IQRAA International Hospital & Research Centre for tax benefits under Section 35(1)(iii) of the Income-tax Act, 1961. This move allows donors to claim 100% deduction for contributions made to these institutions for scientific research and social science research, respectively.
This decision aligns with the government’s broader push to incentivise private funding in research, both scientific and social, through favourable tax treatment.
What is Section 35(1)(iii) of the Income-tax Act?
Section 35(1)(iii) provides 100% deduction for donations made to approved research institutions engaged in:
- Scientific research
- Social science or statistical research
These deductions are available without any monetary cap, unlike Section 80G.
Key Features:
| Particulars | Details |
|---|---|
| Applicable Section | 35(1)(iii) |
| Deduction Type | 100% of donation amount |
| Who Can Claim | Individuals, firms, companies – all taxpayers |
| Condition | Donation must be to a notified institution |
| Limit on Deduction | No upper cap (unlike Section 80G) |
| Mode of Donation | Must be via banking channels (No cash beyond ₹2,000) |
| Reporting by Institution | Must file Form 10BD and issue Form 10BE |
CBDT Approves Gitarthganga & IQRAA Hospital
✅ Who are the beneficiaries?
- Gitarthganga Trust, Pune – Recognised for scientific research
- IQRAA International Hospital and Research Centre, Kozhikode – Recognised for social science research
These approvals are notified through CBDT Notification No. 67/2025 and 68/2025 dated 18th July 2025 under Rule 5C and 5E of the Income-tax Rules, 1962.
📎 Link to Notification on incometaxindia.gov.in
How to Claim Tax Deduction Under Section 35
If you’re planning to donate, here’s how to ensure your deduction is valid:
- Check Approval – Ensure the institution is notified under Section 35.
- Donate via Bank – Avoid cash donations beyond ₹2,000.
- Collect Form 10BE – This certificate from the trust is mandatory.
- Enter PAN of Donee – Required when filing your ITR.
- Keep Proofs Ready – Receipt, bank statement, and 10BE for verification.
Why Section 35 Deductions Are Better Than 80G
| Feature | Section 35 | Section 80G |
|---|---|---|
| Deduction % | 100% | 50% or 100% (varies) |
| Limit on Amount | No limit | Subject to 10% of gross income |
| Applies to | Scientific/Social Research | General charitable causes |
| Eligibility | Individuals & Companies | Mostly Individuals |
| Documentation | PAN, 10BE, Banking proof | PAN, 80G Receipt |
Expert Tip: Use for CSR + Tax Saving
Companies can align CSR with research-based funding to support national R&D while claiming tax benefits. Ensure CSR eligibility by verifying that the donation falls under Schedule VII of the Companies Act, 2013 and the NGO is CSR-registered.
FAQs on Tax Benefits Under Section 35
Q1. Can a company claim Section 35 deduction along with CSR credit?
No, if the expense is claimed under CSR, it cannot be claimed as a deduction under Section 35, as per Explanation 2 to Section 37.
Q2. Is 80G certificate needed for Section 35?
No. Section 35 works on notification-based approvals and requires Form 10BE instead.
Q3. Can I donate in cash to avail deduction?
Only up to ₹2,000. Beyond that, bank transfer or digital mode is mandatory.
Conclusion: Support Research, Save Tax
With Gitarthganga and IQRAA Hospital now eligible under Section 35, donors have another legitimate route to save tax while supporting national research. For corporates and high-income taxpayers, this offers dual benefits — impact + deduction.
To ensure your donation is compliant and properly claimed in ITR, connect with Efiletax today.
✅ We help you verify institution approvals, file correctly, and maximise deductions.
Summary
CBDT has notified Gitarthganga Trust and IQRAA Hospital under Section 35(1)(iii), allowing 100% tax deduction on donations for scientific and social science research. This offers high-income taxpayers and companies a powerful way to save tax while supporting India’s R&D ecosystem.