Income tax department extends tax waiver for Patanjali Research Institute’s Donations for 5 more years !
The Income Tax Department has extended the tax exemption for donations to Baba Ramdev’s Patanjali Research Institute for five years. Launched by Prime Minister Narendra Modi in 2017, the Patanjali Research Institute sells a wide range of products, including food products, nutritional tablets, oils and much more.
According to their website, the research institute aims to ‘use modern scientific methods for research and to promote indigenous medicine such as yoga and Ayurveda for health and immunity’.
Launched in 2010 under the Patanjali Research Foundation Trust, the Revenue Department of India has given a five-year tax exemption to donations made to the company. According to the report, contributors to the trust can apply for tax deductions for five financial years (upto 2027-2028) starting in the 2021-22 financial year.
Income Tax Department Press Release:
The Central Board of Direct Taxes (CBDT) announced on July 12 that the Government of India approves the inclusion of the Haridwar Patanjali Research Foundation under the category of “Research Association” for Scientific Research, as per Subsection (i) of Section 35 of the Income Tax Act, 1961 – Clause (ii) of the Income Tax Rules, 1962 comply with the 5C and 5D Rules.
Explanation of Exemption Rules:
Section 35 of the Income Tax Act allows for the reduction of expenses to the tune of one and a half times the amount “if any amount paid to a research association which conducts scientific research or is used by a university, college or other institution for scientific research”. Therefore taxpayers will be allowed to get exemption under income tax rules.
CBDT spokesperson Surabhi Ahluwalia said, “Under Section 35 (1) (ii) of the Income Tax Act, if a company is found to be genuine in scientific research, it will be approved for exemption. Usually, it’s a long process and the department does its due diligence before giving such approval, and hence each approval is notified through official notification. ”
It is noteworthy that a few months ago Baba Ramdev was in controversy for releasing one of his corporate products ‘Coronil’ as a WHO approved corona drug.
Baba Ramdev and Patanjali, which have already been embroiled in controversy, Now this tax deduction for their donations and the seeming ‘favoritism.’ factors have only raised the controversy.
Links :
tax-exemption-on-funding-for-research-bypatanjali-unit
contribution-to-patanjali-research-foundation-to-get-tax-exemption
https://incometaxindia.gov.in/Communications/Notification/Notification_79_2021.pdf
