Rule 31 — Furnishing of statement of particulars in respect of donation and certificate to donor under section 45(4)(a). Made under s.45, s.265 of the Income-tax Act, 2025.
Rule 31 gives effect to Section 45 and Section 265 of the Income-tax Act, 2025. A rule cannot go beyond the section it serves: where the two seem to differ, the section governs.
Sub-rule (1) makes the deduction under section 45(4)(a) for a sum paid to a research association, University, college or other institution referred to in section 45(3)(a), or to a company referred to in section 45(3)(b), conditional on the recipient doing two things: preparing a statement in Form No. 15 for each tax year and delivering it, or causing it to be delivered, to the Director General of Income-tax (Systems) or the person authorised by him; and furnishing the donor a certificate specifying the amount of donation in Form No. 16.
Sub-rule (2) governs how the recipient aggregates amounts when reporting sums received from a person. It must take into account all the donations of the same nature paid by that person during the tax year, and where a donation is recorded in the name of more than one person it must attribute the value of the donation, or the aggregated value of all the donations, proportionately to all those persons; where the donors specify no proportion, the attribution is equal.
Sub-rule (3) requires Form No. 15 to be verified by the person authorised to verify the return of income under section 265. Sub-rule (4) fixes the time: the statement in Form No. 15 and the certificate to the donor in Form No. 16 are to be furnished on or before the 31st May immediately following the tax year in which the donation is received.
Section 45(4)(a) allows the donor a deduction, but the donor is not the person who knows what was received. This rule puts the reporting duty on the recipient institution or company and makes the donor's deduction depend on it being performed, so the claim can be matched against a statement filed by the payee. Sub-rule (2) settles the two aggregation questions the section leaves open: donations of the same nature over the year, and donations recorded in more than one name.
| What | Figure | The condition on it | Where |
|---|---|---|---|
| Last date for furnishing the statement in Form No. 15 and the certificate in Form No. 16 | On or before the 31st May | The 31st May immediately following the tax year in which the donation is received | Rule 31(4) |
The donor's deduction is hostage to someone else's compliance. Sub-rule (1) says the deduction shall not be allowed unless the recipient both files Form No. 15 and gives the donor Form No. 16, so a donor holding a receipt but no Form No. 16, or dealing with an institution that has not filed, is exposed. Both obligations share one deadline, the 31st May immediately following the tax year of receipt, and it runs from the year of receipt, not the year of payment where those differ in the recipient's books. Where a donation is recorded jointly and the donors have not said how it splits, sub-rule (2)(b) splits it equally, which decides how much each name can claim.
Two partners jointly give Rs 10,00,000 to an approved research association in a tax year and specify no proportion. Under sub-rule (2)(b) the association attributes Rs 5,00,000 to each in its Form No. 15. It must deliver that statement to the Director General of Income-tax (Systems) and issue each donor a Form No. 16 on or before the 31st May immediately following that tax year; if it does neither, sub-rule (1) denies the section 45(4)(a) deduction to both partners.
A donor meets it as Form No. 16 in hand at the time of claiming the deduction; a recipient institution meets it as the annual Form No. 15 filing, verified by the person who signs its return under section 265.
the deduction in respect of any sum paid to the research association, University, college or other institution referred to in section 45(3)(a) or the company referred to in section 45(3)(b) shall not be allowed
Statement of particulars in Form No. 15 and the certificate to the donor in Form No. 16 shall be furnished on or before the 31st May, immediately following the tax year in which the donation is received.