Income-tax Act, 2025

Expenditure on scientific research - Section 45

Expenditure on scientific research.

45. (1)(a) A deduction shall be allowed for any expenditure, being in the nature of

(i) capital expenditure, but not on acquisition of land which is acquired as such or as part of any property; or

(ii) revenue expenditure,

incurred on scientific research related to the business of the assessee subject to provisions of this section.

(b) A deduction shall also be allowed under this sub-section in respect of the aggregate of expenditure (not being in the nature of capital expenditure), related to business, incurred on

(i) salary to an employee engaged in such scientific research; or

(ii) purchase of materials used in such scientific research,

where such expenditure is incurred within three years immediately preceding the commencement of business, to the extent certified by the prescribed authority as incurred on such research and such expenditure shall be deemed to have been incurred in the tax year in which the business is commenced.

(c) For the purposes of this sub-section, the aggregate of capital expenditure incurred within three years immediately preceding the commencement of business shall be deemed to have been incurred in the tax year in which the business is commenced.

(2)(i) A deduction shall be allowed in respect of any expenditure on scientific research incurred (not being expenditure in the nature of cost of any land or building) by a company engaged in the business of

(A) bio-technology; or

(B) manufacture or production of any article or thing, which is not specified in Schedule XIII,

on in-house research and development facility as approved by the prescribed authority, subject to the conditions and manner, as may be prescribed.

(ii) No deduction shall be allowed under this sub-section to a company approved under sub-section (3)(b)(ii).

(iii) No deduction shall be allowed in respect of t .... To read the full section download the app from Google Play store