NEW DELHI: The Income Tax department has notified that Patanjali Research Foundation Trust, Haridwar, is a research associate for scientific research, and hence a business entity that pays any amount to the foundation for scientific research will be eligible to claim the said expense as a deduction from business income under section 35 of the Income Tax Act, thereby reducing their tax outgo.
The said notification will be in effect from 2021-22 to 2026-27. Even as some feel that the notification ‘reeks’ of favouritism, a tax department spokesperson has clarified that it is a routine process followed in case of each research association and nothing is out of the way about the Patanjali notification.
“It is a requirement under section 35(1)(ii) of the Income Tax Act that an entity when found to be genuinely into scientific research the approval should be notified. Usually, it’s a long process and the department does its due diligence before giving such approval, and hence each approval is notified through official notification,” says Surabhi Ahluwalia, official spokesperson of CBDT.
Meanwhile, Patanjali Group on Tuesday said it has achieved a turnover of around Rs 30,000 crore in the fiscal 2020-21, helped by a revenue boost of Rs 16,318 crore from Ruchi Soya a company it had acquired last fiscal through insolvency resolution.
The Patanjali Group is aiming to make its companies debt-free in the coming 3-4 years, and a substantial portion of the follow-on public offer (FPO) of Ruchi Soya, which has a debt of around Rs 3,330 crore, will be diverted to pare its debt, Ramdev said while addressing a virtual press conference.