Section 35 Registration for Research Institutions
Section 35 registration is the income tax approval that lets donors and sponsors claim a deduction for money paid to your research association, university, institution or research company. From 1 April 2026 the provision sits in section 45 of the Income-tax Act, 2025. We prepare the application, coordinate with the approving authority and keep you compliant.
What it is
Under old section 35 of the Income-tax Act, 1961, a business that pays money to an approved research body can deduct it. The body has to be approved first. That approval is what people mean by Section 35 registration. It is not a certificate you buy; it is an approval order from the authority the law names, and it covers only the entities and purposes the section describes.
The Income-tax Act, 2025 applies from tax year 2026-27 and re-enacts the rule as section 45. Sub-section (3) covers payments to research associations and educational institutions, to companies registered in India whose main object is scientific research, and to national laboratories, universities and IITs for approved research programmes. The application for an association or company is made in Form 17 (old Form 3CF). Where this page says “section 35”, it means the same approval under the older Act.
Who it applies to
Research associations and institutions
A society or trust that undertakes scientific research, or social science or statistical research, and wants sponsors to be able to claim deductions for what they give.
Research companies
A company registered in India whose main object is scientific research. A Section 8 company running a clean-energy research lab in Faridabad is a typical example.
Universities and laboratories running programmes
National laboratories, universities and IITs get programme approvals, applied for in Form 7 and granted in Form 8 under the 2025 rules. In-house R&D centres of companies go to the Department of Scientific and Industrial Research (DSIR) under Form 11.
Why it matters
Donors and sponsors can claim a deduction
A company sponsoring a research programme at an approved body can deduct the amount paid. Without approval it cannot, so sponsors usually ask for the approval order first.
It signals credibility
An approval order from the prescribed authority tells a funder that your research objects and accounts have been examined.
It sits alongside 12A and 80G
Research approval is separate from charitable approval. Some institutions need both; see 12A and 80G registration to check where you stand.
Documents required
Constitution and registration
- Trust deed, MoA and AoA, or society bye-laws showing research objects
- Registration certificate of the trust, society or company
- PAN
Research and finances
- Audited accounts for the years the entity has existed
- Description of the research activities and facilities
- Details of research staff and any past programmes
Application and authority
- Form 17 (or Form 7 for a programme approval)
- Authorisation of the signatory
- Digital signature certificate
How it works
Check which limb you fit
We read your objects clause and activities against section 45(3) to see which limb you fit. Say a Gurugram research society wants sponsors from industry: it may need the association limb. A start-up lab incorporated as a company may need the company limb.
Fix the constitution and accounts
If the objects clause is vague or the accounts are not audited, we fix those before applying. A trust deed amendment is cheaper than a rejection.
Prepare and file the application
We draft the research profile, assemble the documents and file the application in the prescribed form.
Reply to queries and track the order
We answer questions from the authority and track the approval order. After approval we help you track donee statements and certificates.
Timelines
Approval time
The authority acts on the application and may ask for more material. We cannot promise a date, so plan sponsor discussions with that in mind.
Order of approval
Once approved, keep a copy of the order for every sponsor and check any conditions it states.
After approval
Under the 2025 rules an approved donee gives a statement in Form 15 and a donation certificate in Form 16. We diarise these with your other filings.
What happens if you miss it
No approval, no deduction
A sponsor paying an unapproved body cannot claim the deduction. In practice, that can cost you the grant.
Approval can be withdrawn
If you stop doing genuine research or breach conditions, the authority can withdraw approval. A payment made before withdrawal is not denied merely because of the later withdrawal, as section 45(5) says.
Records gaps invite questions
Here is the catch: missing statements or certificates leave sponsors unable to prove their claim. Our trust annual compliance service keeps the calendar.
Frequently asked questions
What is Section 35 registration?
Section 35 registration is the approval that lets a research association, institution or research company receive payments for which the payer can claim a deduction under old section 35 of the Income-tax Act, 1961. From tax year 2026-27 the same rule is section 45 of the Income-tax Act, 2025. The approval comes from the authority the law names, not from us. We prepare and file the application.
Is section 35 now section 45 under the Income-tax Act, 2025?
Yes, the rule on expenditure on scientific research is section 45 of the Income-tax Act, 2025, which applies from tax year 2026-27. Sub-section (3) holds the payments to research associations, companies and programmes. Older approvals and orders under section 35 remain relevant for earlier years. We cite the right provision for each year in your documents.
How much deduction does the sponsor get?
The deduction is now the amount actually paid. The old 150% weighted deduction for payments to research associations ended from assessment year 2021-22. Check the conditions in your approval order. We explain the current position to your sponsors on request.
Which form is used to apply for approval?
For a research association or company, the application is Form 17 under the 2025 rules, which replaces the old Form 3CF. Programme approvals for national laboratories, universities and IITs use Form 7, and in-house R&D approval goes to DSIR in Form 11. We pick the right form after reading your objects. Then we prepare and file it.
What is the difference between Section 35 and 12A or 80G approval?
Section 35 approval relates to scientific research and gives the payer a deduction for that. 12A and 80G are charitable-trust approvals under different provisions. A research body that is also a charity may need both. Holding one does not give you the other. We review your entity and tell you which approvals you need.
Can a private company get Section 35 approval?
Only a company registered in India whose main object is scientific research can be approved for receiving research payments, and the authority must approve it. A normal trading company with an R&D wing instead seeks in-house R&D approval from DSIR. Check which limb matches. We read your objects clause and advise before you file.
Do approved institutions file statements after approval?
Yes. Under the 2025 rules an approved research association, university or company gives a statement in Form 15 and a certificate of donation in Form 16 to the donor. Keep a ledger of every sponsor payment through the year. We prepare these with your accounts team.
Who signs the accountant’s reports and audit papers?
Where the process needs an accountant’s or audit report, a practising chartered accountant signs it. Taxhint prepares the schedules, coordinates and files the application, but it does not sign audit reports itself. Your own auditor, or one we arrange with you, signs where required. We tell you at the start which papers need a signature.
What it costs
Our fee plus the government fee that applies to your case, quoted before you commit. Tell us the situation and we will price it exactly.
We have not quoted a government fee because we could not verify one for this application. We confirm it with the authority and show you the figure before you pay.
Ready to begin?
Send us your constitution and the last two years of accounts, and we will tell you which limb of section 45 you fit and what to file.