Expenditure on scientific reasearch
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
18 February 2010
what is the procedure to claim capital expenditure of scientific reasearch in hoapital business u/s 35?
Is there any cerificate or other document prescribed by law?
Is there any cerificate or other document prescribed by law?
18 February 2010
You will have to get a certificate from Chartered Accountant for expenses incurred in Scientific Expenditure, which you want to claim u/s 35.
and also keep a file related documents of expenses.
Regards!!!
and also keep a file related documents of expenses.
Regards!!!
18 February 2010
You will have to get a certificate from Chartered Accountant for expenses incurred in Scientific Expenditure, which you want to claim u/s 35.
and also keep a file related documents of expenses.
Regards!!!
and also keep a file related documents of expenses.
Regards!!!
Querist : Anonymous
Querist :
Anonymous
(Querist)
18 February 2010
Thanks Dinesh.
Reqiurement of CA certificate is mentioned in Act?
please tell me under which sub section if 35 its required?
Reqiurement of CA certificate is mentioned in Act?
please tell me under which sub section if 35 its required?
Querist : Anonymous
Querist :
Anonymous
(Querist)
18 February 2010
Thanks Dinesh.
Reqiurement of CA certificate is mentioned in Act?
please tell me under which sub section if 35 its required?
Reqiurement of CA certificate is mentioned in Act?
please tell me under which sub section if 35 its required?
24 July 2024
Under Section 35 of the Income Tax Act, 1961, provisions exist for claiming deduction for expenditure on scientific research related to businesses, including hospitals. Here’s an overview of the procedure and requirements for claiming capital expenditure under Section 35:
### Procedure to Claim Capital Expenditure for Scientific Research:
1. **Eligibility Criteria**:
- The expenditure must be incurred on scientific research related to the business activities of the hospital.
- It should be incurred for the purpose of scientific research, including clinical research in the case of hospitals.
2. **Approval and Certification**:
- To claim deduction under Section 35, the scientific research should be approved by the prescribed authority (Department of Scientific and Industrial Research - DSIR) under the Ministry of Science and Technology, Government of India.
- The DSIR approval certifies that the research activity is eligible for deduction under Section 35.
3. **Submission of Details**:
- The hospital needs to maintain detailed records and documentation of the capital expenditure incurred on scientific research.
- These records should include invoices, bills, contracts, and other supporting documents that demonstrate the nature and purpose of the expenditure.
4. **CA Certificate Requirement**:
- While Section 35 does not explicitly require a Chartered Accountant (CA) certificate for claiming capital expenditure, it is a common practice to obtain a CA certificate to certify the expenditure incurred on scientific research.
- The CA certificate provides assurance to the tax authorities that the expenditure meets the criteria specified under Section 35 and is supported by proper documentation.
5. **Filing of Tax Return**:
- The hospital should disclose the expenditure on scientific research in its income tax return (ITR).
- Ensure that the DSIR approval certificate and other relevant documents are attached as supporting evidence with the tax return.
### Subsection Relevance:
- **Section 35(1)(iv)**: This subsection specifically deals with capital expenditure incurred on scientific research related to the business carried on by the assessee (hospital in this case).
- **Section 35(2AB)**: For hospitals, this subsection provides for additional deduction for capital expenditure on specified scientific research related to in-house research and development facilities.
### Conclusion:
To summarize, to claim capital expenditure for scientific research under Section 35 for a hospital business:
- Ensure the research is approved by DSIR.
- Maintain proper documentation of expenditure.
- Consider obtaining a CA certificate for substantiation.
- File the claim appropriately in the income tax return along with necessary supporting documents.
Consulting with a tax advisor or CA experienced in handling Section 35 deductions would be beneficial to ensure compliance with the specific requirements and maximize the benefit of the deduction available under the Income Tax Act.
### Procedure to Claim Capital Expenditure for Scientific Research:
1. **Eligibility Criteria**:
- The expenditure must be incurred on scientific research related to the business activities of the hospital.
- It should be incurred for the purpose of scientific research, including clinical research in the case of hospitals.
2. **Approval and Certification**:
- To claim deduction under Section 35, the scientific research should be approved by the prescribed authority (Department of Scientific and Industrial Research - DSIR) under the Ministry of Science and Technology, Government of India.
- The DSIR approval certifies that the research activity is eligible for deduction under Section 35.
3. **Submission of Details**:
- The hospital needs to maintain detailed records and documentation of the capital expenditure incurred on scientific research.
- These records should include invoices, bills, contracts, and other supporting documents that demonstrate the nature and purpose of the expenditure.
4. **CA Certificate Requirement**:
- While Section 35 does not explicitly require a Chartered Accountant (CA) certificate for claiming capital expenditure, it is a common practice to obtain a CA certificate to certify the expenditure incurred on scientific research.
- The CA certificate provides assurance to the tax authorities that the expenditure meets the criteria specified under Section 35 and is supported by proper documentation.
5. **Filing of Tax Return**:
- The hospital should disclose the expenditure on scientific research in its income tax return (ITR).
- Ensure that the DSIR approval certificate and other relevant documents are attached as supporting evidence with the tax return.
### Subsection Relevance:
- **Section 35(1)(iv)**: This subsection specifically deals with capital expenditure incurred on scientific research related to the business carried on by the assessee (hospital in this case).
- **Section 35(2AB)**: For hospitals, this subsection provides for additional deduction for capital expenditure on specified scientific research related to in-house research and development facilities.
### Conclusion:
To summarize, to claim capital expenditure for scientific research under Section 35 for a hospital business:
- Ensure the research is approved by DSIR.
- Maintain proper documentation of expenditure.
- Consider obtaining a CA certificate for substantiation.
- File the claim appropriately in the income tax return along with necessary supporting documents.
Consulting with a tax advisor or CA experienced in handling Section 35 deductions would be beneficial to ensure compliance with the specific requirements and maximize the benefit of the deduction available under the Income Tax Act.
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