CBDT Grants Scientific Research Status to Ahmedabad University: Donations Now Eligible for Tax Deduction

The Central Board of Direct Taxes (CBDT) under the Ministry of Finance (Department of Revenue) has issued an official notification [S.O. 1490(E)], dated March 20, 2026, informing that the Central Government of India has permitted an authority named ‘The Ahmedabad University’, possessing PAN: AAAJT2294D, Ahmedabad, Gujarat, for ‘Scientific Research’ under the category of ‘University, College, or Other Institution’.

The authority is now allowed for the purposes stated under Section 35(1)(ii) of the Income-tax Act, 1961, read with Rules 5C and 5E of the Income-tax Rules, 1962. The provisions of the said law allow tax deductions for payments made to approved scientific research associations, universities, or colleges. The government has taken the aforementioned action in exercise of its powers granted under clause (ii) of sub-section (1) of section 35 of the Income-tax Act, 1961 (43 of 1961) (the Act), read with Rules 5C and 5E of the Income-tax Rules, 1962 (the Rules).

The directions of the said notification are set to apply for assessment years 2026-27 to 2030-31 if Ahmedabad University fulfils the following conditions:

(1) The university should adhere to the conditions mentioned under Rule 5E of the Income Tax Rules, 1962.

(2) As per the provisions of Rule 18AB of the Income-tax Rules, 1962, the authority must prepare a yearly statement of all donations it receives under sub-section (1A) of section 35 of the Act, in Form 10BD. Thereafter, the same should be submitted to the concerned income tax authority on or before May 31, following the financial year in which the donation was received.

In case there are any mistakes or updates needed, the university can also submit a correction statement to rectify the mistake or to add, delete or update the information submitted in the initial statement delivered under sub-section (1A) of section 35 of the Act.

(3) The university must also issue each donor a certificate in Form 10BE, mentioning the amount that has been donated. The certificate is obligatory to be issued within the time limit specified under Rule 18AB of the Income-tax Rules, 1962.