CBDT Grants Tax Exemption Approval for Tyre Research Institute
Issue: To grant official recognition and approval to the M/s Hari Shankar Sighania Elastomer & Tyre Research Institute for undertaking Scientific Research, enabling both the institute and its donors to claim specific tax benefits under the Income Tax Act, 1961.
Facts:
The Central Board of Direct Taxes (CBDT) issued Notification No. 04/2025 on November 11, 2025.
The recipient is M/s Hari Shankar Sighania Elastomer & Tyre Research Institute, located in Mysuru, Karnataka.
The approval covers the institute’s activities related to Scientific Research.
Decision:
The CBDT granted approval to the Institute 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.
Key TakeDowns:
Tax Benefit for Donors: The primary significance of the approval under Section 35(1)(iia) is that any sum paid by a taxpayer to this research association will qualify for a weighted deduction (historically 100% or more) from their taxable income. This incentivizes contributions to scientific research in the tyre and elastomer sector. * Duration of Approval: The approval is effective for five Assessment Years (AYs), commencing from AY 2022-23 and extending up to AY 2026-27.
Retrospective Effect: The explanatory memorandum clarifies that no person is adversely affected by granting this retrospective approval.
Sectoral Focus: The approval boosts research specific to the elastomer and tyre industry, which is critical for the growth and quality standards of India’s automotive and manufacturing sectors.
Source :- notification-no-04-2025