Section 35AC of the Income-tax Act, 1961 - Eligible Projects or Schemes, Expenditure on - Notified Eligible Projects or Schemes
Notification No.235/2015 [F.No.V.27015/3/2015-SO(NAT.COM)] / SO 3045(E) was published on 10 November 2015. Its subject is Section 35AC of the Income-tax Act, 1961 - Eligible Projects or Schemes, Expenditure on - Notified Eligible Projects or Schemes.
The notification does two things for the project "Mid-day Meal Scheme" of Maria Seva Sangha, Villa Maria, No. 12, Rest House Road, Bangalore - 560001, notified at serial number 4 of S.O. 469(E) dated 2 July 1996. First, it notifies the project as an eligible project under section 35AC for a further period of three years, financial years 2015-16, 2016-17 and 2017-18. Second, it amends S.O. 469(E) so that in the Table against serial number 4, in column (4), the maximum cost allowable as deduction under section 35AC is raised from "Rs. 90.00 lakh" to "Rs. 1.00 crore".
The project was likely to extend beyond nineteen years and its cost to rise from Rs. 90.00 lakh to Rs. 1.00 crore, and the National Committee for Promotion of Social and Economic Welfare recommended both the extension and the enhancement under sub-rule (5) of rule 11M of the Income-tax Rules, 1962.
SECTION 35AC OF THE INCOME-TAX ACT, 1961 - ELIGIBLE PROJECTS OR SCHEMES, EXPENDITURE ON - NOTIFIED ELIGIBLE PROJECTS OR SCHEMES
NOTIFICATION NO. SO 3045(E) [NO.235/2015 (F.NO.V.27015/3/2015-SO (NAT.COM))], DATED 10-11-2015
Whereas by notification of the Government of India, in the Ministry of Finance (Department of Revenue) number S.O.469(E) dated the 2nd July, 1996, issued under sub-section (1) read with clause (b) of the Explanation to section 35AC of the Income-tax Act, 1961 (43 of 1961), the Central Government had notified at serial number 4, "Mid-day Meal Scheme in eighteen schools of Bangalore" by "Maria Seva Sangha, Villa Maria, No.12, Rest House Road, Bangalore - 560001", as an eligible project or scheme for a period of three years beginning with assessment year 1997-1998, which was extended further vide notification number S.O.317(E) dated the 11th May, 1999 for a period of two years beginning with assessment year 2000-2001, which was extended further vide notification number S.O.552(E) dated the 20th June, 2001 for a period of two years beginning with assessment year 2002-2003, which was extended further vide notification number S.O.688(E) dated the 13th June, 2003 for a period of one years beginning with assessment year 2004-2005, which was extended further vide notification number S.O.398(E) dated the 23rd March, 2005 for a period of two years beginning with financial year 2004-2005, which was extended further vide notification number S.O.1407(E) dated the 4th September, 2006 for a period of three years beginning with financial year 2006-2007, which was extended further vide notification number S.O.836(E) dated the 25th March, 2009 for a period of three years beginning with financial year 2009-10 and which was extended further vide notification number S.O.639(E) dated the 12th March, 2013 for a period of three years ending with financial year 2014-15;
And whereas by notification number S.O.260(E) dated the 27th March, 1997 the estimated cost was enhanced from Rs. 2.30 lakh to Rs.15.00 lakh, vide notification number S.O.1371(E) dated the 27th November, 2003, the estimated cost was further enhanced from Rs.15.00 lakh to Rs.30.00 lakh, vide notification number S.O.1407(E) dated the 4th September, 2006 the estimated cost was further enhanced from Rs. 30.00 lakh to Rs. 50.00 lakh, vide notification number S.O.1869(E) dated 11th August, 2011 the estimated cost was further enhanced from Rs. 50 lakh to Rs. 75 lakh and the estimated cost was further enhanced from Rs. 75.00 lakh to Rs. 90.00 lakh vide notification number S.O.639(E) dated the 12th March, 2013;
And whereas the said project or scheme is likely to extend beyond nineteen years;
And whereas the project cost is likely to enhance from Rs. 90.0 lakh to Rs. 1.00 core;
And whereas the National Committee for Promotion of Social and Economic Welfare, being satisfied that the said project or scheme is being executed properly, made a further recommendation under sub-rule (5) of rule 11M of the Income-tax Rules, 1962 for extending the said project or scheme for a further period of three years and enhancing the project cost from Rs. 90.00 lakh to Rs. 1.00 crore.
Now, therefore, the Central Government, in exercise of the powers conferred by sub- section (1) read with clause (b) of the Explanation to section 35AC of the Income-tax Act, 1961 (43 of 1961), (a) hereby notifies the scheme or project "Mid-day Meal Scheme in three schools of Bangalore" which is being carried out by "Maria Seva Sangha, Villa Maria, No.12, Rest House Road, Bangalore - 560001", as an eligible project or scheme for a further period of three years commencing with financial year 2015-16 i.e 2015-16, 2016-17 & 2017-18 and;
(b) further amends the said notification number S.O. 469(E) dated the 2nd July, 1996, to the following effect, namely :—
In the said notification, in the Table against serial number 4, in column (4), relating to maximum amount of cost to be allowed as deduction under section 35 AC, for the letters, figures and word "Rs. 90.00 lakh", the letters, figures and word "Rs. 1.00 crore" shall be substituted.
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| Rule of the 1962 Rules | Now, in the 2026 Rules |
|---|---|
| Rule 11M | no counterpart recorded |
financial year 2015-16.
In a donor's claim of deduction under section 35AC and in the assessing officer's check of the approved project cost recorded in column (4) of the Table to S.O. 469(E).
A donor who pays Rs. 40 lakh to Maria Seva Sangha for this project in financial year 2015-16 is within the enhanced ceiling of Rs. 1.00 crore; before the substitution the aggregate allowable cost for the project was Rs. 90.00 lakh.
Rules it names. Rule 11M of the Income-tax Rules, 1962. The 1962 Rules were replaced by the Income-tax Rules, 2026, which renumbered nearly everything: a rule number quoted here almost never means the same rule today.
← Notification No.236/2015 [F.No.V.27015/3/2015-SO(NAT.COM)] / SO 3046(E) · Notification No.234/2015 [F.No.V.27015/3/2015-SO(NAT.COM)] / SO 3044(E) →
Source: the Income Tax Department’s own published text — its page for this instrument.