CBDT Approves Zandu Foundation for Health Care as Research Association Under Income-Tax Act, 2025
Overview of the Notification
The Central Board of Direct Taxes (CBDT), acting under the authority of the Ministry of Finance (Department of Revenue), has issued Notification No. 124 of 2026-Income Tax, dated 28th September, 2026, formally approving the Zandu Foundation for Health Care, Mumbai (PAN: AAATZ1289L) as a Research Association for the purposes of scientific research under the newly enacted Income-tax Act, 2025.
This approval has been granted in exercise of powers conferred by Section 45(4)(b) of the Income-tax Act, 2025, and is operative for the purposes of Section 45(3)(a)(i) of the same Act, read in conjunction with Rule 32 and Rule 33 of the Income-tax Rules, 2026.
Statutory Framework: Relevant Provisions
Section 45(3)(a)(i) of the Income-tax Act, 2025
This provision governs the eligibility of certain scientific research associations to receive donations that qualify for deduction in the hands of the donor-assessee. For a research body to fall within the scope of this provision, it must receive formal approval from the Central Government under Section 45(4)(b).
Section 45(4)(b) of the Income-tax Act, 2025
This sub-section empowers the Central Government to approve institutions engaged in scientific research under the category of Research Association, thereby enabling donations made to such entities to qualify for the applicable tax benefit in the hands of the donor.
Rule 32 and Rule 33 of the Income-tax Rules, 2026
These rules prescribe the procedural and compliance framework that an approved research association must adhere to in order to retain its approved status and fulfill its reporting obligations to the income-tax authorities.