R&D / agricultural extension / skill development (range 29–40)

Conditions.

• Books and audit (sub-rules 1 and 2). Separate books for the project, audited by an accountant under section 515(3)(b). The audit report comments on whether the books show a true and fair view, the genuineness of the project's activities, and fulfilment of the Act, rules and notification conditions.
• Beneficiary charges (sub-rule 3). The assessee cannot accept from a beneficiary more than the amount approved in the notification for training, education, guidance or materials.
• No benefit (sub-rule 4). The assessee must derive no direct or indirect benefit from the project except the deduction of eligible expenditure.
• Eligible expenses (sub-rule 5). All expenses incurred wholly and exclusively for the eligible project, less the amount received from beneficiaries, the cost of any land or building, and any expenditure reimbursed or reimbursable by anyone, directly or indirectly.

Filings (sub-rule 6). On or before the return due date under section 263(1), the assessee furnishes to the jurisdictional Commissioner the audited statement of accounts with the audit report and the deduction claimed under section 47(1)(a); a note on the project for the year and the programme and allocation for the current year; and a certificate from the Ministry of Agriculture and Farmers Welfare on the genuineness of the project.

Reports on defaults (sub-rule 7). The Commissioner may, after inquiries, report to the Board for action under rule 37(11) where books are not separate or audited, documents are not furnished, activities have ceased or are not genuine, or conditions are not being followed.