Dear Amir,

Only X can get 125% weighted deduction. Y & Z deduction will be restricted to 100% to avoid double deduction.

Originally posted by : Amir
	Dear Faiyaz, Ya u r rite If Y spends it in house,   but now my question is if University Y donates this sum of Rs. 10,000 to university Z(say approved), then University Y will get 125% or 100%..

 

Hi amir, as such once X has availed 125% deduction...

 

So, now for Y or thereafer Z.., the deduction available will be 100% of the amount...

Dear Faiyaz,

Can u plz support ur answer with the provision or circular ,etc

I mean I didn't knew about it..It might be a new thing to learn..

Hi amir as such i've never come across through any such case, neither practically nor in our books...

 

But common understanding states that X paid such amount to Y considering that it will carry on Scientific research with the amount donated, so he gets 125%... That means on that amount, once the weighted deduction has been asked for...

 

Now, if the whole or part of such amount, Y forwards to Z, then i dont think so he'll get any EXTRA deduction.., as the same has been granted to X... .... In simple terms we call it DOUBLE DEDUCTION...

 

So, it wont be allowed.. But let others also response, and lets see what they have to say

Hi Dhiraj,

Ur reasoning is perfectly correct, I agree with it tha if payments is made for conducting SR then that amount cannot be donated to another institute.

But then from where did this question of claiming 125% arises..Friend Faiyaz said that the if University Y incurs the expenditure then it will get 100% deduction & not 125%..

When 125% deduction is available only in case of donations to other institutes , how can one even think of claiming in case of Inhouse research..

I hope u got it Dhiraj, what I meant. and thanks 4 ur clarification. 

 

thr is nothing like getting confused in this.the provision is tht if the institution to whom donation is made doesn't spends it on SR purpose or its approval gets withdrawn thn it doesn't affect 125% deduction of donor. and further ques arises tht what will happen if such amt is donated further to another institution ans is it has to be proved tht such amt is donated out of donations receieved if proven so thn in my view NO DEDUCTION shall be allowed to university as this not the purpose for which donation was received and approval was granted by CG and if donations are made out of own funds then 125% wil be allowed to donor university as nthng like such is provided in law tht an approved institution can't donate

OFCOURSE YOU CAN GET 125% WEIGHTED DEDUCTION ON IT

  Sec 35(2) says that donations should be made with specific instruction for amt to be used for SR, undertaken under a programme approved by govt. but if the inst does not use it for the purpose then the inst is liable and not the contributor, the contributor cotinues to enjoy 125% dedn. Now the question of the inst getting deduction for using the contributed amt for research, whether 100% should be given or not, Sec 35(1) & (2) is attracted which says SR carried on by the ASSESSEE himself and the research connected with the business of the assessee. I dont think inst are involved in any business?? Am I Correct?? if not pl let me know the reason? Can we also relate this to sec 35(1)(iia) & 35(2AB) which are mutually exclusive in nature.

Originally posted by : D н ! я σ √
	Hi amir as such i've never come across through any such case, neither practically nor in our books...   But common understanding states that X paid such amount to Y considering that it will carry on Scientific research with the amount donated, so he gets 125%... That means on that amount, once the weighted deduction has been asked for...   Now, if the whole or part of such amount, Y forwards to Z, then i dont think so he'll get any EXTRA deduction.., as the same has been granted to X... .... In simple terms we call it DOUBLE DEDUCTION...   So, it wont be allowed.. But let others also response, and lets see what they have to say

 

 

U r correct but nothing is mentioned in the law about such a case. So i think that subsequent parties i.e. Y and Z will also get 125%.

 

Fateemaji 

asessee  will get 125% deductin , because the words "Related to business" are not there under clause (ii) of Sec 35(1),,Amir is 100% right
 

yes u can claim deduction.

Dear All,

Approved University etc. Income is already 100% exempted so how can they can claim 125% weighted deduction when the whole income is exempted !!!! so there is no question of weighted deduction to the approved university etc. 

An amount equal 2 125% of any sum paid 2 an approved scientific research association or to an approved university college or other institution shall be allowed. Further there is no conditon that the research should be related to the business or profession of the assessee...