Rule 31 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Rule 31 of the Income-tax Rules, 2026 denies the section 45(4)(a) deduction unless the recipient institution files a statement in Form No. 15 and gives the donor a certificate in Form No. 16 — both by 31 May after the tax year.
The condition rule 31 imposes
Sub-rule (1): for the purposes of section 45(4)(a), 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 that recipient:
- prepares a statement in Form No. 15 for each tax year and delivers or causes it to be delivered to the Director General of Income-tax (Systems) or the person authorised by him; and
- furnishes to the donor a certificate specifying the amount of donation in Form No. 16.
This is the structural feature of rule 31. The donor does everything correctly — pays the sum, holds the receipt — and still loses the deduction if the recipient fails to file Form No. 15 or to issue Form No. 16. A donor relying on section 45(4)(a) therefore has to obtain the Form No. 16 certificate and, in practice, confirm that the statement was filed, because neither is within its own control.
The two aggregation rules
Sub-rule (2) tells the recipient how to build the figures it reports in respect of any person:
| Rule | Effect |
|---|---|
| (a) Same nature, whole year | Take into account all the donations of the same nature paid by that person during the tax year — so five separate payments by one donor are reported as one aggregated sum, not five entries |
| (b) Joint donors | Proportionately attribute the value of the donation, or the aggregated value of all donations, to all the persons where the donation is recorded in more than one name — and where no proportion is specified by the donors, attribute equally |
The equal-attribution default matters most for donations from a family or a group of individuals with a single receipt. Unless the donors state a split, rule 31 divides it evenly — and the Form No. 16 certificates follow that division, which may not be how the donors intended to claim.
Verification and due date
- Sub-rule (3): the person who is authorised to verify the return of income under section 265 shall verify Form No. 15 — so the statement is signed by the same office-bearer who signs the institution's return, not by an accounts clerk.
- Sub-rule (4): the statement in Form No. 15 and the certificate in Form No. 16 shall be furnished on or before the 31st May immediately following the tax year in which the donation is received.
The 31 May deadline covers the statement and the donor certificates together. That is well before the donor's own return due date, which is the point: the reported data and the donor's certificate are both in existence before any deduction is claimed.
Where the sums come from
| Recipient | Provision |
|---|---|
| Research association | Section 45(3)(a), approved under rules 32 and 33 |
| University, college or other institution | Section 45(3)(a), approved under rules 32 and 34 |
| Company | Section 45(3)(b), approved under rule 35 |
All three approval rules independently require the recipient to maintain a separate statement of donations received and the amount applied for research, certified by the auditor and accompanying the audit report. Rule 31 is the reporting side of that same record: the institution builds the donation register once, and it serves the audit report, the Form No. 15 statement and the Form No. 16 certificates.
Worked example
| Facts | Reporting under rule 31 |
|---|---|
| Company pays Rs 20,00,000 to an approved research association in three instalments during the tax year | Aggregated as one sum of Rs 20,00,000 in Form No. 15 |
| Certificate to the donor | Form No. 16, by 31 May following that tax year |
| Donation of Rs 6,00,000 receipted in the joint names of three individuals with no split stated | Rs 2,00,000 each — equal attribution |
| Same donation with the donors specifying 50:30:20 | Attributed proportionately as specified |
| Association files Form No. 15 in September | Late; the donors' deduction is at risk |
| Form No. 15 signed by the finance manager | Must be verified by the person authorised under section 265 |
Compliance checklist
- Recipients: maintain a donation register that supports the audit report, Form No. 15 and Form No. 16 alike.
- Aggregate donations of the same nature per donor per tax year.
- Ask joint donors for a stated proportion; otherwise attribute equally.
- Have Form No. 15 verified by the section 265 person.
- File Form No. 15 with the Director General of Income-tax (Systems) by 31 May.
- Issue every Form No. 16 certificate by the same date.
- Donors: obtain the Form No. 16 certificate before claiming the deduction.
- Donors making joint donations: specify the proportion in writing at the time of payment.
Common mistakes
- Claiming the deduction without holding the Form No. 16 certificate.
- Reporting each instalment separately instead of aggregating by donor.
- Splitting a joint donation by assumption where the donors specified nothing.
- Treating 31 May as the return due date and filing late.
- Verification by an unauthorised person.