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ritu mehta

ritu mehta (Querist)

14 February 2013 pls tell me sec 35 expenditure on scientific research

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

14 February 2013 Section 35 is like a long tale and can not be told in a single Episode. It is full of turns & twists and you may require at least 3-4 readings to grasp it properly. However, the tips provided here may be quite useful to you. The highlights of the section-

1. This section is a path breaker and exceptional in the Income-Tax Act. The motive of the section is very much clearly borne into mind.
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A. It allows expenditure of Capital Nature also.
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B. It allows weighted deduction. If you spend Rs 100/ you can claim Rs 175/ or Rs. 125/- or Rs. 200/ as deduction.
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C. It allows deduction in respect of amount donated to other institutions.
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D. In some cases expenditure may or may not relate to the business of the assessee.
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E. Certain Prior Period Expenditures are also allowed in the prescribed manner.
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F. The assessee has to follow certain prescribed regulatory procedures to avail such deduction.
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G. In some cases expenditure on land and building is allowed whereas in certain cases it is not allowed on land.
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If you read the section by keeping mind the aspects mentioned here in above,(Of course you may add certain other aspects also) I think you could be able to re-tell the tale as and when required.

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