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