New Delhi, Jul 14 (IANS): The Centre has accorded 'Research Association' tag to Baba Ramdev-led Patanjali Research Foundation Trust, Haridwar, thereby exempting donations made to the trust from income tax.

The notification would be applicable on donations made during 2021-2022 to 2026-27 and businesses can claim tax deduction for the same period.

"In exercise of the powers conferred by clauses (ii) of sub-section (1) of section 35 of the Income-tax Act, 1961 (43 of 1961) read with rules 5C and 5D of the Income-tax Rules, 1962, the Central Government hereby approves M/s Patanjali Research Foundation Trust, Haridwar under the category 'Research Association' for Scientific Research for the purposes of clauses (ii) of sub-section (1) of section 35 of the Income-tax Act, 1961 read with rules 5C and 5D of the Income-tax Rules, 1962," said the notification of the Central Board of Direct Taxes.

"This Notification shall apply with effect from the date of publication in the Official Gazette (i.e from the Previous Year 2021-2022) and accordingly shall be applicable for Assessment Year(s) 2022-23 to 2027-28."

As per the Income Tax norms, while computing the income under head of 'business and profession', a taxpayer is permitted to deduct there from, any amount paid to an 'approved scientific research association' for undertaking scientific research.

With the new tax recognition given to the research foundation, the entity can expect to see an increase in donations.