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.
2 Replies
vicky singh
(student)
(67 Points)
Replied 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)
Replied 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.
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