NGOs and trusts engaged in scientific research activities play a vital role in India's innovation ecosystem. The Direct Tax Code (DTC) 2025, through Section 45(4)(a) read with Rule 31 of the Income-tax Rules, 2026, imposes specific reporting obligations on research associations, universities, colleges, and other institutions that receive donations for scientific research. Understanding Form 15 and Form 16 is essential for compliance. This guide analyses the reporting requirements.
The Donation Reporting Framework
Section 45(4)(a) — Reporting Requirements
Section 45(4)(a) provides that 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, unless such research association, University, college or other institution or company:
- Prepares statement in Form No. 15 for each tax year and deliver or cause to be delivered to the Director General of Income-tax (Systems) or the person authorised by him
- Furnish to the donor, a certificate specifying the amount of donation in Form No. 16
Rule 31 — Furnishing of Statement of Particulars
Rule 31 of the Income-tax Rules, 2026 prescribes the procedure for furnishing the statement and certificate.
Form 15 — Statement of Donations
Purpose of Form 15
Form 15 is the statement of particulars of donations received for scientific research. Research associations, universities, colleges, and other institutions must prepare and deliver Form 15 to the Director General of Income-tax (Systems) for each tax year.
Content of Form 15
Form 15 contains details of:
- Donor information (name, address, PAN)
- Amount of donation
- Date of receipt of donation
- Nature of donation
- Utilisation of donation for scientific research
Aggregation of Donations
While aggregating the amounts for determining the sums received for reporting in respect of any person:
- All donations of the same nature paid by that person during the tax year shall be taken into account
- In a case where the donation is recorded in the name of more than one person, the value shall be proportionately attributed to all the persons
- Where no proportion is specified by the donors, the value shall be attributed equally to all the donors
Verification
The person who is authorised to verify the return of income under Section 265 shall verify Form No. 15.
Due Date
Form No. 15 shall be furnished on or before the 31st May immediately following the tax year in which the donation is received.
Form 16 — Donation Certificate
Purpose of Form 16
Form 16 is the certificate to be furnished to the donor specifying the amount of donation. The research association, University, college or other institution must issue Form 16 to each donor.
Content of Form 16
Form 16 contains:
- Name and address of the donor
- PAN of the donor
- Amount of donation
- Date of receipt of donation
- Name and registration number of the donee institution
Due Date
Form No. 16 shall be furnished on or before the 31st May immediately following the tax year in which the donation is received.
Eligibility for Scientific Research Deduction
Section 45(3)(a) — Eligible Donees
Deduction is available for sums paid to:
- A research association having the object of undertaking scientific research
- A University, college or other institution approved for the purposes of Section 45(3)(a)(i) to be used for scientific research
Section 45(3)(b) — Eligible Donees
Deduction is available for sums paid to:
- A company registered in India having the main object of scientific research and development
- Approved by the prescribed authority for the purposes of Section 45(3)(b)
Practical Compliance for NGOs and Trusts
1. Maintain Proper Records
- Record all donations received for scientific research
- Record donor details (name, address, PAN)
- Record the amount and date of each donation
2. Prepare Form 15
- Prepare Form 15 for each tax year
- Include all donations received
- Ensure the form is complete and accurate
3. Issue Form 16
- Issue Form 16 to each donor
- Ensure the certificate is complete and accurate
- Provide the certificate by the due date
4. File Form 15
- File Form 15 with the Director General of Income-tax (Systems)
- Ensure timely filing (on or before 31st May)
5. Maintain Supporting Documents
- Maintain copies of all donations received
- Maintain copies of Form 15 filed
- Maintain copies of Form 16 issued
Consequences of Non-Compliance
Disallowance of Deduction
If Form 15 is not filed or Form 16 is not issued:
- The deduction may be disallowed
- Income may be recomputed
- Interest and penalty may be levied
Penalty
Non-compliance may result in penalty under Section 464.
Expert Legal Guidance
Anuj Desai & Associates provides comprehensive legal advisory services on scientific research donation reporting for NGOs and trusts. Our direct tax experts help research associations, universities, and colleges understand their reporting obligations, prepare Form 15 and Form 16, and navigate the regulatory framework. We assist in compliance, documentation, and representation before income-tax authorities.
Disclaimer: This article provides general information and does not constitute legal advice. For specific guidance on scientific research donation reporting or any other direct tax matter, please consult qualified legal professionals.
Need Expert Legal Guidance?
Navigating the complex scientific research donation reporting framework requires experienced legal counsel. At Anuj Desai & Associates, we provide comprehensive direct tax advisory services, including:
- Form 15 Filing: Assistance with preparation and filing
- Form 16 Issuance: Assistance with certificate issuance
- Compliance: Guidance on ongoing compliance requirements
- Representation: Representation before income-tax authorities
Contact us for expert legal guidance on your scientific research donation reporting matters.