9 A-109 Expenditure on scientific research plantor machinery entitled to 100 per cent write off by way of depreciation or for any other reason in any oneycar.
48.7-6 cONSEQUENCES IF THE NEW ASSET IS TRANSFERRED WITHIN 8 YEARS-The deduction allowed under this proviSion will be withdrawn if the asset acauired in accordance with the scheme S so otherwise transferred within 8years of the end of the previous year. These provisions are the same as given inpara48.6-5.
98 Reserve for shipping business (Sec. 33AC] - An Indian public limited company (engaged in the business ofoperation of ship) can claim deduction under section 33AC. However,deduction under section 33AC is not available from the assessment year 2005-06. Expenditure.on scientific research (Sec. 35])- 48.9 research may be grouped as under: The deduction in respect of expenditure on scientific 48.9-1 REVENUE EXPENDITURE INCURRED BY AN ASSESSEE WHO HIMSELF CARRIES ON SCIENTIFIC RESEARCH (SEC: 35(0)4))- Where the assessee himself carries on scientific research and incurs revenueexpenditure,,deduction is allowed for suchl expenditure only if such research relates to his business. Further, where salary has been paid to an employee engaged in scientific research or any expenditure has beenincurred on purchase of materials used in scientific rescarch, such salary or expenditure, paid or incurred after March 31, 1973, but withinthree years immediately preceding the commencement of the business, is deemedi to have been paid orincurred in the previous year in which the business is commenced tothe extent it is certified by the authority prescribed for this purpose under rule 6[prescribed authorityis Director-Generall(Income-tax Exemptions) in concurrence with the Secretary,, Department of Scientific and Industrial Research, Government of India), 48.9-2 CONTRIBUTION TO OUTSIDERS (SEC. 35(1)0)/6i))@ . Where the assessee does not himself carry on research but makes contributions to the following institutions for this purpose, adeduction is allowed as follows- To whon contribution can be give Deduction (as a percentage of actual expenditure) Up to AY For the AYs For the AYs From the 2010-11 2011-12 to 2018-19 toAY 2021-22 2017-18 2020-21 onwards
An approved'' scientific association which has, as its object,
undertaking of scientific research related or unrelated to the business of assessee (sec. 35(1Xi)) 125% 175% 150% 100%
An approved'' university, college or other institution for the
use of scientific research related or unrelated to the busi ness of assessee [sec. 35(1X(i)] 125% 175% 150% 1009% An approved university, college or other institution for the use of research in social sciences or statistical research related or unrelated to the business of the assessee [sec. 35(1)(ii)] 1259% 1259% 100% 1009%
Notes: nThe above-mentioned research association, university, college or other institution shall make an online application in the prescribed form [ie., Form No. 3CF]to the CIT or Directorof Income-tax having jurisdiction over the applicant, for approval. Form No. 3CF shall be submitted electronically under digital signature (if the return of incomeisrequired to be furnished under digital signature) or through electronic verification code (EVC) (in other cases), Form No. 3CF shall be verified by the person who is authorised to verify income-tax return under section 140. A copy of application in Form No. 3CF shall be sent to the Member (1T), Central Board of Direct Taxes.
12 Forlist of approved associations/ institutions,see Taxmann's Direct Taxes Circulars, 2014 edn., Vol. 1. If notification under section 10(23C)%(iv) or 35(1)Xi) is issued after the completion of assessment of the taxpayer for the relevant assessment year, exemption/deduction can be given by rectification of mistake under section 154-Circular No. 725, dated October 16, 1995. a Deduction under section 35(1Xi)/(i) is not available, if tax is payable for the alternative tax regime by an individual/ HUF|sec. 11SBAC) adomesticcompany [sec. 115BA/115BAA/115BAB]or aresidentco-operative society (sec. 115BAD/ 11SBAE).
