Donations to Patanjali Research Foundation Trust to get tax exemption for five years from 2021-’22

The Central Board of Direct Taxes has announced a five-year extension on tax deductions on donations to yoga guru Ramdev’s Patanjali Research Foundation Trust.

Contributors to the Trust may claim tax deductions for five years, starting from the financial year 2021-’22 as the central board granted the status of “Research Association” under Section 35(1)(ii) of the Income tax Act on Monday.

Section 35 of the Income tax Act allows deduction of any expenditure of an amount equal to “one-and-one-half times of any sum paid to a research association which has as its object the undertaking of scientific research or to a university, college or other institution to be used for scientific research”. A taxpayer would therefore be allowed to avail the deduction under the income tax rules, computing it under the head business and profession.

Rule 5D of section 35 of the Act listed the conditions for the approval of the deductions. Under the rule, the primary aim to avail of the tax exemptions would be to carry out scientific research or in social science or statistics, reported The Hindu.

This research should be done by the association that will need to maintain accounts and get them audited by an accountant as mandated under the…

Read more