WHAT IS SECTION 35 OF THE INCOME TAX ACT?
Section 35 of the Income Tax Act provides benefit of expenditure incurred on Scientific Research & Development relating to business by the assessee.
WAYS OF SCIENTIFIC RESEARCH
1. In house research
2. Payment made to outsiders
– Approved association, Institutions, University or college.
– National Laboratory or an Indian Institute of Technology.
– Company having main object as scientific research and development.
NATURE OF EXPENDITURES ALLOWED FOR CLAIMING DEDUCTION U/S 35:
1. Revenue Expenditure incurred for Scientific Research or Statistical Research.
2. Capital Expenditure incurred for scientific research except acquisition of any land
| PARTICULARS | QUANTUM OF DEDUCTION |
|---|---|
| In house expenditure | |
| Revenue Expenditure | 100% |
| Capital Expenditure | 100% |
| Payment made to outsiders for Scientific Research | |
| Approved association, Institutions, University or college | 150% |
| National Laboratory or an Indian Institute of Technology. | 150% |
| Company having main object as scientific research and development | 100% |
| Payment made to outsiders for social & Statistical Research | 100% |
| Payment made to unapproved association | NILL |