Notification No. 2/2025

Order under clause iia of sub section 1 of section 35 of the income tax act 1961 read with rule 5F of the income tax rules 1962

What this is

Notification No. 2/2025 was published on 17 October 2025. Its subject is Order under clause iia of sub section 1 of section 35 of the income tax act 1961 read with rule 5F of the income tax rules 1962.

This grants an exemption or a relief under a provision that allows one. Read the conditions attached: an exemption notification is construed strictly, and a condition missed is the exemption lost.

What it does

An order of the Principal Chief Commissioner of Income-tax (Exemptions), Delhi under section 35(1)(iia) of the Income-tax Act, 1961 read with rule 5F of the Income-tax Rules, 1962. It accords approval to the company M/s Mazumdar Shaw Medical Foundation (PAN AAICM6964A), having its registered office at Mazumdar Shaw Medical Centre, NH Health City, Bommasandra Industrial Estate, Bangalore South, Karnataka, for 'Scientific Research' for the purposes of that clause. The approval is stated to be applicable for five assessment years, from assessment year 2025-26 to assessment year 2029-30.

Who it reaches

Mazumdar Shaw Medical Foundation as the approved company
donors paying sums to it for scientific research and claiming the section 35(1)(iia) deduction
assessing officers verifying such deduction claims

The provisions it speaks to

Left, the provision of the Income-tax Act, 1961 as the instrument itself names it. Right, the section of the Income-tax Act, 2025 that the department’s own concordance maps it to — which is where the same ground is now covered.

Under the 1961 Act	Now
s.35	s.45, s.66

The instrument, as the Board published it

The department publishes this one only as a PDF, so the words below were read out of that PDF by machine. That reading can carry its own mistakes — a misread number, a broken line. Check the signed document before you rely on a figure in it.

I
2.
F.No. PCCIT(E)!Notificatlon u/s 35(1)(/la)l!l/2025/ .23 :fJ
Government of India
Ministry of Finance
Central Board of Direct Taxes
Pr. Chief Commissioner of Income Tax (Exemptions}
NO TIFICA TION No. ,,1 /2025
Dated: IS Oct. 2025
Ord ~ er under clause {iia) of sub-section (1) of section 35 of the l,ncome Tax Act. 1961 read with Rule 5F of the Income Tax Rules 1962
In exercise of the powers conferred by section 35(1)(iia) of the Income Tax Act, 1961, read with Rule SF of the Income Tax Ru/es 1962, the Pr. Chief Commissioner of Income Tax (Exemptions), Delhi hereby accords approval to the company Mis Mazumdar Shaw Medical Foundation, (PllN: AAICM6964A), having registered office at No. 258/A, 8th Floor, A Block, Mazurndar Shaw Medical Centre, NH Health City, Banglore South, Bommasandra Industral Estate S.O. Banglore, Karnataka, India 560099 for 'Scientific Research' for the purpose of the clause (iia) of sub-section (1) of section 35 of the Income-tax Act, 1961 read with rule SF of the Income-tax Rules, 1962.
This Notification shall be applicable for five Assessment years (A Y) from A Y 2025-26 to A Y 2029-30.
( Debjyoti Das )
Principal Chief Commissioner of Income Tax (Exemptions),
New Delhi
Explanat~ry Memorandum: It is certified that no person is being adversely affected by granting retrospectwe effect to this notification.
Copy to:-
1. PPS to the Chairman and Members, CBDT, North Block, New Delhi
2. All Pr. Chief Commissioners/Director Generals of Income Tax - with a request to circulate amongst all Officers in their regions/charges.
3. JS(TPL)-l&ll!Media Co-ordinator and Official Spokesperson of CBDT
4. D/T(IT)ID/T(Audit)IDIT(Vig.)IADG(System)1 2 3 4 5/CIT(ITBA) CIT(CPC) B t CIT(CPC-TDS), Ghaziabad. ' ' ' ' ' , enga uru,
5. ADG (PR.PP&~9_ with a request for advertisement campaign for the Notific r
6. TPL and /TA D1v1s1ons of CBDT. a ion.
7. The lristitute of ~hartered Accountants of India, IP Estate New o lh ·
8. Web Manager, "mcometaxindia.gov.in" for hosting on the ~ebsite e '· .
9. Database _cell for uploading on www.irsofficersonline.gov in • 10. /TBA Publisher for uploading on /TBA Website. • and the DG System,s Corner. _
Income Tax Officer (Hqrs.) (E)-1
0/o the Pr. CCIT(Exemptions), New Delhi.

What it changes

The rule numbers are the 1962 Rules’ own, as the notification names them. The right-hand column is the department’s own mapping into the Income-tax Rules, 2026, which renumbered nearly everything.

Rule of the 1962 Rules	Now, in the 2026 Rules
Rule 5F	rule 35

From when

assessment year 2025-26 to assessment year 2029-30, retrospectively.

What to watch

The approval runs for five assessment years, 2025-26 to 2029-30, and no longer.
The explanatory memorandum certifies that no person is adversely affected by granting the notification retrospective effect, so it operates from the first of those years though issued in October 2025.
Approval is for scientific research under clause (iia) alone, and depends on the company continuing to carry on that activity.
The scan is degraded and the notification's own number and internal date are not legible with confidence, so the departmental copy should be checked before citing them.

Where you meet it

In a donor's return and assessment where a deduction is claimed for a sum paid to this company for scientific research, and in the company's compliance as an approved research company.

What it names

Rules it names. Rule 5F 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.

On the same provision

Other instruments in this library that name the same provision of the 1961 Act. They are not necessarily still operative, and a later one may have replaced an earlier one without saying so.

Notification No. 6/2026 — Order under clause iia of sub section 1 of section 35 of the income tax act 1961 read with rule 5F of the income tax rul 12 May 2026
Notification No. 43/2026 [F. No. 203/11/2025/ITA-II] / SO 1659(E) — इिु बाला, उप सजचि 30 March 2026
Notification No. 42/2026 [F. No 203/09/2025/ITA-II] / SO 1658(E) — इिुबाला, उप सजचि 30 March 2026
Notification No. 40/2026 [F. No. 203/07/2025/ITA-II] / SO 1657(E) — Ministry of Finance 30 March 2026
Notification No. 5/2026 — Order under clause iia of sub section 1 of section 35 of the income tax act 1961 read with rule 5F of the income tax rul 23 March 2026
Notification No. 24/2026 [F. No. 203/13/2025/ITA-II] / SO 1491(E) — Ministry of Finance 20 March 2026

← Notification No. 3/2025 · Notification No. 153/2025 [F. No. 300195/60/2024-ITA-I] / S.O. 4680(E) →

What a notification is. A notification is made under a power the Act itself gives, and within that power it is law — unlike a circular, which only binds the department. Its reach is the reach of the enabling provision and no wider, and the date it carries decides from when it works.

Source: the Income Tax Department’s own published text — its page for this instrument.