Donations for Scientific Research Deduction under Income Tax Act 2025 (Section 135)

Under section 135 of the Income-tax Act, 2025, a person whose income includes no business or profession income can deduct any sum paid in the tax year to an approved scientific research body, or to an approved social science or statistical research body. Cash gifts above Rs 2,000 do not qualify. The deduction is the sum paid, because the section sets no percentage or multiple.

This guide explains who can claim, which payees count, what blocks the claim, and how the claim is verified. Every point comes from the Act as amended by the Finance Act, 2026, with the section number alongside. It is general information, not tax advice. Last reviewed against that text on 10 November 2026.

What is the donation deduction for scientific research under section 135?

Section 135(1) says that in computing total income, there shall be deducted any sum paid by the assessee in the tax year to one of two groups of payees:

• Clause (a): a research association whose object is undertaking scientific research, or a University, college or other institution approved under section 45(3)(a)(i) to be used for scientific research.
• Clause (b): a research association whose object is undertaking research in social science or statistical research, or a University, college or other institution approved under section 45(3)(a)(ii) to be used for research in social science or statistical research.

"Assessee" is simply the person who is assessed to tax. The payment is a donation or contribution: you give money to the body and receive nothing in return.

Who can claim it, and who cannot?

Section 135(2) closes the deduction in two situations, and section 135(5) adds a third bar against double claims:

Condition	Where in the Act	Result
Gross total income includes income under the head "Profits and gains of business or profession"	Section 135(2)(a)	No deduction under section 135
The contribution is made in cash and exceeds Rs 2,000	Section 135(2)(b)	No deduction for that contribution
The same payment is already deducted and allowed under another provision for any tax year	Section 135(5)	No deduction under section 135, and no second claim anywhere else

The business income test looks at what your gross total income includes. A salaried person with only salary, house property and interest income passes it. A person with even a small business or professional income in the same year does not.

Which institutions qualify?

Two things are needed: the payee must fit the description in section 135(1), and where the payee is a University, college or other institution, it must be approved under section 45(3)(a)(i) or (ii). Section 45(4)(b) adds that such an association or institution is eligible only if it is approved in the prescribed manner and specified by the Central Government by notification.

In practice, ask the body for its approval or notification details and keep a copy before paying. The section 135 text does not list the approval procedure, so check the current notification list for the payee's name.

How much can you deduct?

The wording is "any sum paid by the assessee in the tax year". There is no percentage of income cap in section 135, and no weighted deduction such as 150%. The deduction equals the eligible sum paid, subject to the two bars above. Because the Act does not say more, avoid relying on any figure beyond what the section states.

How do you decide whether a payment qualifies?

Every "not allowed" or "stop" outcome means the sum is not deductible under section 135. Check the Act and the payee's approval status before you claim.

Worked example 1: a salaried person pays by bank transfer

Assumptions (tax year 2026-27): Ravi has only salary and interest income. His gross total income is Rs 12,00,000. He transfers Rs 25,000 by bank to a research association that undertakes scientific research and holds the required approval. He claims no other deduction.

Step	Working	Rs
1. Gross total income	Salary and interest, no business income	12,00,000
2. Passes section 135(2)(a)?	No business or profession income	Yes
3. Passes section 135(2)(b)?	Paid by bank, not in cash	Yes
4. Deduction under section 135(1)(a)	Sum paid	25,000
5. Total income	12,00,000 − 25,000	11,75,000

Worked example 2: three donations, one fails the cash rule

Assumptions (tax year 2026-27): Meena has only salary and house property income, with a gross total income of Rs 8,40,000. During the year she makes three contributions to payees that meet the section 135(1) description and approval test:

Payment	Payee and mode	Section 135(2)(b)	Deductible (Rs)
A	Research association, scientific research, cheque Rs 15,000	Not cash	15,000
B	University approved under section 45(3)(a)(ii), social science research, online transfer Rs 10,000	Not cash	10,000
C	Research association, cash Rs 3,000	Cash above Rs 2,000	0
Total deduction (15,000 + 10,000 + 0)			25,000

Total income = 8,40,000 − 25,000 = Rs 8,15,000. Had payment C been Rs 2,000 or less in cash, the limit in section 135(2)(b) would not have applied to it, because the bar is on cash exceeding Rs 2,000.

Real-life example 1: a consultant who donates to a research association

Sunil runs a consulting practice and also earns rent. He gives Rs 1,00,000 by bank transfer to an approved research association. Because his gross total income includes professional income, section 135(2)(a) bars the deduction under section 135. Section 135 gives no relief here, even though the payment is genuine and the payee is approved. Whether any other provision covers the payment, such as section 45(3), is a separate question to check against that section's own conditions.

Real-life example 2: approval withdrawn after the gift

Anita, a salaried employee, donates Rs 20,000 by cheque to an approved research institution in July. In the next tax year the institution loses its approval. Section 135(3) says the deduction is not denied merely because approval was withdrawn after the payment. Her claim for the year of payment stands, assuming the other conditions were met when she paid.

How is the claim verified?

Under section 135(4), your claim in the return is allowed on the basis of information the payee furnishes about the sum to the prescribed income-tax authority or the person that authority authorises. This is subject to verification under the risk management strategy the Board formulates from time to time.

The practical point is that the payee reports your donation. Ask for a receipt that carries your name, PAN and the amount, and make sure the payee has reported it before you file. Section 135 itself does not name the form or deadline, but rule 31 of the Income-tax Rules, 2026 does, as set out next.

Which forms and due date apply to the payee's reporting?

Rule 31 (made for section 45(4)(a)) says the research association, University, college or other institution must do two things for each tax year:

• Prepare a statement of donations in Form No. 15 and deliver it to the Director General of Income-tax (Systems) or the person authorised by him (rule 31(1)(a)).
• Give the donor a certificate of the donation amount in Form No. 16 (rule 31(1)(b)).

Both are due on or before 31 May immediately following the tax year in which the donation is received (rule 31(4)). For a donation made in tax year 2026-27, that is 31 May 2027. The person authorised to verify the payee's return under section 265 verifies Form 15 (rule 31(3)).

If one donation is recorded in the names of several donors and the donors have not specified shares, the payee splits it equally among them (rule 31(2)(b)). Donations of the same nature by one person in the year are added together for reporting (rule 31(2)(a)). So ask for your Form 16 certificate after 31 May and match it to what you claim.

What must an approved body do to keep its approval?

Rules 33 and 34 set conditions for approval of research associations and Universities, colleges or other institutions. Among them: research must be the body's object or use for the sums received, it must keep a separate statement of donations received and amounts applied, and it must furnish an annual note on research work by the due date of filing its return under section 263(1). A body that fails these conditions can be reported to the Central Government. As a donor, this is a reason to check approval before you pay, though section 135(3) protects a claim for a payment made before approval was withdrawn.

Quick reference

Question	Answer	Where
What is deducted?	Any sum paid in the tax year	Section 135(1)
Business or profession income in gross total income?	No deduction	Section 135(2)(a)
Cash limit per contribution	Rs 2,000	Section 135(2)(b)
Approval withdrawn after payment	Deduction not denied on that ground alone	Section 135(3)
How the claim is checked	Payee information, risk management verification	Section 135(4)
Claiming again elsewhere	Not allowed	Section 135(5)

Common mistakes

• Claiming despite business income. Even a small amount of professional or business income in gross total income closes the deduction under section 135(2)(a).
• Paying cash above Rs 2,000. Use a bank transfer, cheque or other non-cash mode and keep the proof.
• Assuming any research charity qualifies. The payee must fit section 135(1) and, for an institution, hold the approval referred to in section 45(3)(a). Check before paying.
• Double claiming. Section 135(5) bars a second deduction for the same payment under any other provision of the Act.
• Skipping the receipt. The claim relies on information furnished by the payee, so a mismatch can invite verification.

How this relates to other research provisions

Section 135 is a deduction for a person without business income. Companies and businesses that spend on research or donate to approved bodies look at section 45 instead. See our guide to scientific research expenditure under the Income Tax Act 2025. For other gifts, see donation deduction rules, and for the wider picture see deductions from total income. We have not mapped section 135 to the old law here because we did not verify that mapping from an official source.

Where this is in the Act

• Section 135(1): payees and the deduction
• Section 135(2): business income bar and Rs 2,000 cash limit
• Section 135(3): approval withdrawn after payment
• Section 135(4): claim based on payee information
• Section 135(5): no double deduction
• Section 45(3)(a)(i) and (ii), 45(4)(b): approval of associations and institutions
• Rule 31: Form 15 statement and Form 16 donor certificate, due 31 May after the tax year
• Rules 33 and 34: conditions for approval of research associations and institutions

If you file returns for several clients, donation receipts and payee approvals are easy to lose track of near year end. Finexo's practice management software helps CA firms keep client documents and filing tasks in one place. It does not decide whether a donation qualifies.