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Expenditure on scientific research sec 35

Tax queries 1063 views 2 replies

Sivaram.B

student

37 Points Posted on 08 October 2012

What is the difference between the inhouse research refered to in section 35(2AB) and the revenue research incurred by the assessee u/s 35(1)(i). Both are incurred by the assessee , he is not contributing to someone to do research for him, both are scientific research only..... So how to classify them.

Replies (2)

vicky singh

student

67 Points Posted on 08 October 2012

these are the topics related to the incometax and u can refers it from v k singhania answer is 175 % and 200% of the scientific research

Manvi Mehrotra

CA Practice

35 Points Posted on 08 October 2012

In Sec 35(1)(i), the assessee makes an expenditure which is revenue in nature and fully relates to its business. Deduction = 100%

In Sec 35(2AB), the assessee is engaged in the production/manufacture of a specified article + has incurred expenditure on in-house research. the expenditure on land and building is not considered.) Deduction = 200%.
Also, this deduction can be claimed only if assessee enters into an agreement with the prescribed authority to carry on the research with co-operation and allow the audit to be done for his expenditure.