Deduction in respect of certain donations for scientific research or rural development
[Section-135 as per the Income Tax Act, 2025 (this Act) w.e.f. 1st April, 2026.]
Section 135(1) of Income Tax Act 2025
135(1) In computing the total income of an assessee, there shall be deducted, as per the provisions of this section, any sum paid by the assessee in the tax year to,––
- (a) a research association which has as its object the undertaking of scientific research, or to a University, college or other institution approved for the purposes of section 45(3)(a)(i) to be used for scientific research;
- (b) a research association which has as its object the undertaking of research in social science or statistical research, or to a University, college or other institution approved for the purposes of section 45(3)(a)(ii) to be used for research in social science or statistical research;
Section 135(2) of Income Tax Act 2025
135(2) Deduction for contributions made as per sub-section (1) shall not be allowed, if—
- (a) the gross total income of the assessee includes income which is chargeable under the head “Profits and gains of business or profession”; or
- (b) the contribution is made in cash exceeding two thousand rupees.
Section 135(3) of Income Tax Act 2025
135(3) Deduction under sub-section (1)(a) and (1)(b) shall not be denied merely on the ground that subsequent to the payment of such sum by the assessee, approval to such association, University, college, other institution referred there in to whom the payment was made has been withdrawn.
Section 135(4) of Income Tax Act 2025
135(4) The claim of the assessee for a deduction in respect of any sum referred to in sub-section (1) in the return of income for any tax year filed by him, shall be allowed on the basis of information relating to such sum furnished by the payee to the prescribed income-tax authority or the person authorised by such authority, subject to verification as per the risk management strategy formulated by the Board from time to time.
FAQs on Section 135 of Income Tax Act 2025
What is the purpose of Section 135 of the Income Tax Act, 2025?
Section 135 provides for a deduction while computing total income in respect of donations made for scientific research or for research in social science or statistical research.
Who is eligible to claim deduction under Section 135(1)?
Any assessee who makes a qualifying payment in the tax year to approved research associations, universities, colleges, or other institutions is eligible.
What types of donations qualify for deduction under Section 135(1)(a)?
Donations made to a research association or approved university, college, or institution for the purpose of scientific research.
What types of donations qualify under Section 135(1)(b)?
Donations made to a research association or approved university, college, or institution for the purpose of research in social science or statistical research.
Is there any restriction on claiming deduction under Section 135(2)?
Yes, deduction is not allowed if the assessee’s gross total income includes business or professional income, or if the contribution exceeds ₹2,000 and is made in cash.
Can an assessee claim deduction under Section 135 if their income includes business or professional income?
No, deduction under Section 135 is disallowed if the gross total income includes income chargeable under “Profits and gains of business or profession.”
Is cash donation eligible for deduction under Section 135?
Only if the cash donation does not exceed ₹2,000; otherwise, the deduction is disallowed.
What if the approval of the research institution is withdrawn after the donation?
The deduction shall not be denied merely because the approval is withdrawn after the donation is made.
Does the timing of approval withdrawal affect the deduction claim?
No, subsequent withdrawal of approval does not affect the validity of the deduction under Section 135.
How is the deduction under Section 135 allowed in the return of income?
It is allowed based on information furnished by the payee to the prescribed income-tax authority, subject to verification under the Board’s risk management strategy.
Is any verification required for allowing the deduction under Section 135?
Yes, verification is carried out as per the risk management strategy formulated by the Board.
Is the deduction under Section 135 automatic upon payment?
No, it must be supported by information provided by the payee and may be subject to verification.
Can a private individual claim deduction under Section 135 for a qualifying donation?
Yes, as long as the individual does not have business or professional income and follows the other conditions.
Are all educational institutions eligible for donation deductions under Section 135?
Only those universities, colleges, or institutions which are approved for the purposes mentioned in section 45(3)(a)(i) or (ii) are eligible.
Does the Act specify any particular method of furnishing information by the payee?
Yes, the payee must furnish the information to the prescribed income-tax authority or authorised person.
Can the deduction under Section 135 be claimed for donations outside India?
No, the section applies only to donations made within India to approved Indian entities.
Is partial deduction allowed if a donation is partly in cash and partly through banking channels?
Deduction is only allowed for the non-cash portion if the cash portion exceeds ₹2,000.
What happens if the donation is made but the payee fails to furnish information to the authority?
The deduction may be disallowed if the required information is not furnished by the payee.
Is there a cap on the amount of deduction under Section 135?
No specific cap is mentioned, but it must comply with the conditions of approval and non-cash payment where applicable.
Can donations to government institutions for scientific research qualify under Section 135?
Only if such institutions are specifically approved under the relevant clause referred in section 45(3)(a).
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