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    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