Filing of statement and issue of certificate for donation made to research institutions

Introduction

Deduction under section 45(3) shall be available only when the person receiving such donation prepares and delivers or cause to deliver a statement of donation in Form 15 and issues a certificate of donation in Form 16 to the donor.

1. About

The Income Tax Act allows incentives by way of additional deduction under Section 45 for the expenditure incurred by the organisations on research work. The deduction available under this provision in respect of expenditure incurred on scientific research is classified into In-house research and payments to outsiders.

If an assessee does not himself carry on research but makes contributions to the specified institutions for this purpose, the deduction is allowed for such contribution. However, the deduction for the payment made to the following institution shall be allowed if such institutions prepare and deliver a statement of donation and furnish a certificate to the donor:

(a) Contribution to an approved research association [Section 45(3)(a)];

(b) Contribution to an approved university or college or other institution [Section 45(3)(a)]; and

(c) Contribution to an Indian scientific research company [Section 45(3)(b)].

2. Statement of donation

2.1. Form and mode of furnishing statement

Every donee is required to file a statement of donation received in Form No. 15 for each tax year and deliver or cause to be delivered to the DGIT (System) or the person authorised by him.

2.2. Time limit for furnishing statement

Statement of donation is required to be furnished on or before 31

3. Certificate of donation

3.1. Form for furnishing Certificate

Donee is required to furnish a certificate to the donor specifying the amount of donation received during the year from such donor in Form No. 16.

3.2. Time limit for furnishing statement

Certificate of donation is required to be furnished on or before 31

This article is general information and not tax advice. Provisions change. Confirm your position with a qualified professional before acting.