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ritu mehta

ritu mehta (Querist)
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14 February 2013 pls tell me sec 35 expenditure on scientific research

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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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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