Section 35 benefit to research & development activities

This query is : Resolved

CA Shraddha Vora (Querist)
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17 September 2013 I have a trust engaged in several different type of activities like certification, training, seminars, exhibitions, research & development etc. with non-profit intentions.

But all of the above activities can be grouped mainly in 2 groups :
Training & Education
Research & Development

Direct expenses are charged against revenue from these respective activities and indirect expenses are apportioned based on revenue ratio.

--- Meera

In these circumstances, can the trust take the benefit of section 12AA?

Can it claim benefit of section 35 in respect of expenses made for research activities? Under section 35 or any other section?

What other benefits can it claim?

Ankit

Ankit (Expert)
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17 September 2013 Dear Shraddha,

Though education is a charitable object under the definition given in section 2(15) of the Income Tax Act, I am not sure whether the kind of training you are talking about, will fall in that category. Though you can make an attempt at taking a registration under 12AA.

No, deduction u/s 35 is allowable only for approved institutions. And the approval norms under this section are very stringent.

I have also sent you a Pvt Msg in this regard…please have a look…