Deduction allowable towards expenditure on Scientific Research (Sec 35, Income Tax Act, 1961)-

TANMOY MUKHERJI INSTITUTE OF JURIDICAL SCIENCE

Dr. Tanmoy Mukherji

Advocate

Deduction allowable towards expenditure on Scientific Research (Sec 35, Income Tax Act, 1961)-

Tanmoy Mukherji

Advocate

Scientific Research deduction is a tax incentive granted to business and industries that invest in Research and Development (R and D). The government encourages innovation by allowing deduction of expenditure incurred on Scientific Research related to the business.

Scientific Research –

Any activity for the extension of knowledge in natural or applied science including agriculture, medicine, bio-technology, information technology and industrial process.

Constitutional foundation –

Structure of Sec 35-

Types of Deduction under Sec 35-

Scientific Research related to business-

Expenditure before commencement of business-

Certain Scientific Research expenditure incurred before the commencement of business can also qualify.

Approved Scientific Research Institutions-

Practical working diagram-

Numerical Illustration-