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Income-tax Rules, 2026 · Rule 34 of 333

Rule 34: Conditions subject to which approval is to be granted to a University, college or other institution for

Reviewed by CA Nikhil Gupta · Last reviewed 28 July 2026

Income-tax Rules, 2026 · Base instrument dated 20 March 2026 · Effective 1 April 2026

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How does an educational institution remain eligible? — an accessible explanation of the notified rule, its use, its records and a practical example.

Read the simple explanation

Rule 34 — statutory reference text

Read the Gazette notification and any later amendment for the legally authoritative text.

34. Conditions subject to which approval is to be granted to a University, college or other institution for deduction for expenditure on scientific research under section 45(4) read with section 45(3)(a).– (1) The sum paid to a University, college or other institution shall be used for scientific research and research in social science or statistical research. (2) The applicant University, college or other institution shall carry out scientific research, research in social science or statistical research through its faculty members or its enrolled students. (3) A University or college or other institution approved under section 45(4)(b), shall– (a) maintain separate books of account in respect of the sums received by it for scientific research or, as the case may be, for research in social science or statistical research; (b) reflect therein the amount used for carrying out research; (c) get such books of account audited by an accountant, as defined in the section 515(3)(b); and (d) furnish the report of such audit duly signed and verified by such accountant to the Commissioner of Income-tax having jurisdiction over the case, by the due date of furnishing the return of income under section 263(1). (4) The University or college or other institution shall maintain a separate statement of donations received and the amount used for research and a copy of such statement duly certified by the auditor shall accompany the report of audit referred to in sub-rule (3). (5) The University, college or other institution shall, by the due date of furnishing the return of income under section 263(1), furnish a statement to the Commissioner of Income-tax containing— (a) a detailed note on the research work undertaken by it during the tax year; (b) a summary of research articles published in national or international journals during the tax year; (c) any patent or other similar rights applied for or registered during the tax year; (d) the programme of research projects to be undertaken during the forthcoming tax year and the financial allocation for such programme. (6) If it is found by the Commissioner of Income-tax that the University or college or other institution— (a) is not maintaining separate books of account for research activities; or (b) has failed to furnish its audit report; or (c) has not furnished its statement of the sums received and the sums used for research or a statement referred to in sub-rule (5); or (d) has ceased to carry on its research activities, or its activities are not genuine; or (e) is not fulfilling the conditions subject to which approval was granted to it, he may, after making appropriate enquiries, furnish a report on the circumstances referred to in clauses (a) to (e) to the Central Government within six months from the date of furnishing the return of income under section 263(1).

Local extract SHA-256: f832ec34e81284c6f7151f4cac29be94f95c20bf939dc22f4d687c9a2c86fc98. This hash authenticates the local extract only; it does not certify that every amendment, table or Gazette footnote has been consolidated.

The 2-minute explanation

The prescribed conditions for universities, colleges and other institutions must be read with the approved research purpose. Status as an education provider and approval for the specific tax deduction are different matters.

Who should check this rule?

Anyone preparing, verifying or advising on conditions subject to which approval is to be granted to a university, college or other institution for should first establish that the fact pattern and tax year fall within Rule 34. The statute and underlying Act provision together determine eligibility, computation and procedures; the heading alone does not create a deduction or exemption.

Practical illustration

A college donor receipt should not be promoted as tax-deductible solely because the recipient appears on a university website.

Records to keep

Maintain the relevant approval, institutional recognition, audited accounts and donor communication.

How to apply the rule in practice

  1. Confirm that the transaction or person falls within Rule 34: conditions subject to which approval is to be granted to a university, college or other institution for.
  2. Read the reproduced statutory conditions and identify exclusions or alternative methods before selecting a tax treatment.
  3. Prepare a calculation and documentary trail using the method described above; cross-check amounts and dates with the underlying records.
  4. Record the relevant assessment year or tax year, source notification and the final basis used in the return or filing.

Related Act provisions mentioned in the reference text: section 45(4), section 45(3), section 515(3), section 263(1).

Questions taxpayers commonly ask

Is Rule 34 relevant to every taxpayer?

No. It applies only where the person, transaction or computation meets the scope described in the rule and its parent provision. For conditions subject to which approval is to be granted to a university, college or other institution for, review the actual legal conditions before claiming a tax result.

Can I rely only on the label “Conditions subject to which approval is to be granted to a University, college or other institution for”?

No. The name describes the subject, but exceptions, dates, forms and calculation methods appear in the rule text. Work from those details and maintain the evidence described above.

What if Rule 34 was amended after March 2026?

Apply the amendment and its effective-date provisions to the applicable tax year. The original notification is the baseline, not a guarantee that every later tax year uses identical wording.

Official legal sources

Income-tax Rules, 2026 — CBDT notification No. 22/2026, G.S.R. 198(E)

Income Tax Department — Acts, rules, forms and updates

Income-tax Act, 2025 — statutory hub

For older years and pending proceedings, the savings and transition provisions may require a separate analysis. Historical Act and 1962 Rules material should not be silently used as the 2026 text.

This page is an educational explanation. Tax consequences depend on verified facts, applicable amendments and professional advice.