CBDT Grants Approval to IIIT Hyderabad for Scientific Research Under Income Tax Act

In a significant development, the Central Board of Direct Taxes (CBDT), under the Ministry of Finance, has issued Notification No. 125/2024, approving the International Institute of Information Technology (IIIT), Hyderabad, for 'Scientific Research.' This approval falls under the category of 'University, college or other institution,' as specified in clause (ii) of sub-section (1) of Section 35 of the Income-tax Act, 1961.

Effective from the financial year 2024-25, this recognition will apply for the assessment years 2025-26 to 2029-30. It allows IIIT Hyderabad to avail benefits under the specified provisions of the Income-tax Rules, 1962, facilitating its efforts in scientific research and innovation.

The notification clarifies that no individual or entity will be adversely affected by the retrospective implementation of this decision, as noted in the explanatory memorandum.

Official copy of the notification is as follows

MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION

New Delhi, the 2nd December, 2024

S.O. 5187(E).—In exercise of the powers conferred by clause (ii) of sub-section (1) of section 35 of the Income-tax Act, 1961 (43 of 1961) read with Rules 5C and 5E of the Income-tax Rules, 1962, the Central Government hereby approves International Institute of Information Technology, Hyderabad (PAN: AAAAI6797B) for 'Scientific Research' under the category of 'University, college or other institution' for the purposes of clause (ii)
of sub-section (1) of section 35 of the Income-tax Act, 1961 read with rules 5C and 5E of the Income-tax Rules, 1962.

2. This Notification shall apply with effect from the date of publication in the Official Gazette (i.e. from the Previous Year 2024-25) and accordingly shall be applicable for Assessment Years 2025-26 to 2029-30.

[Notification No. 125/2024/F. No. 203/07/2024/ITA-II]
CASTRO JAYAPRAKASH T., Under Secy.

Explanatory Memorandum: It is certified that no person is being adversely affected by granting retrospective effect to this notification.