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|
|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|