FATEMA (CHARTERED ACCOUNTANT) (719 Points)
27 January 2010An individual makes a payment of Rs. 9000 to an approved institute u/s 35(1)(ii) for the purpose of carrying on a scientific research.However, the scientific research is not related to the business of the asessee.Will the asesse get deduction @ 100% or @ 125% u/s 35?
Amir
(Learner)
(4016 Points)
Replied 27 January 2010
Dear Fatema,
The words "Related to business" are not there under clause (ii) of Sec 35(1),,
Therefore weighted deduction equal to 125% will be allowed.
Max Payne
(employed)
(2569 Points)
Replied 27 January 2010
Hi,
As of now the assessee will get wighted deduction of 125% in computing PGBP, whether the research is connected to business or not....
FATEMA
(CHARTERED ACCOUNTANT)
(719 Points)
Replied 27 January 2010
So wen will asessee get 100% deduction?
Amir
(Learner)
(4016 Points)
Replied 27 January 2010
Dear Fatema,
What kind of query is this??
Here Law is giving benefit & u r not ready to accept.
FATEMA
(CHARTERED ACCOUNTANT)
(719 Points)
Replied 27 January 2010
Nothing like that Amir.we were taught that we get 100% deduction u/s 35 in certain cases.I could not recall those situations in which we get 100% deduction.that is why that query
Amir
(Learner)
(4016 Points)
Replied 27 January 2010
Dear Fatema,
Sec 35(1)(i), Research other than approved institutions,etc willget 100% deduction ..
Simple.
Pragya Jha
(Learner)
(40 Points)
Replied 27 January 2010
| Originally posted by : Amir | ||
 |
Dear Fatema, The words "Related to business" are not there under clause (ii) of Sec 35(1),, Therefore weighted deduction equal to 125% will be allowed. |
 |
Correct....sir.....
Neha
(Article)
(118 Points)
Replied 27 January 2010
Yes, I too agree with Amir Pragya Jhaa....
dats absolutely ryt1!!
CA FaIyaZ PaTrAwaLa
(CA)
(276 Points)
Replied 27 January 2010
When any sum paid to an approved institute u/s 35(1)(ii) for the purpose of carrying on a scientific research.. e.g X co. paid sum of Rs.15000 to Y university (assumed Approved University) for Scientific research(SR). Now X Co. is eligible for 125% weighted deduction. then Y university incurred expenditure for SR suppose Rs. 10000 then Y university cannot get 125% deduction to avoid double deduction Y university can claim deduction upto Rs. 10000 i.e 100%
In the above situation there is 100% deduction.
FATEMA
(CHARTERED ACCOUNTANT)
(719 Points)
Replied 27 January 2010
Thanks Faiyaz.This is what exactly my professor said.
Amir
(Learner)
(4016 Points)
Replied 27 January 2010
Dear Faiyaz,
Ya u r rite If Y spends it in house, but now my question is if University Y donates this sum of Rs. 10,000 to university Z(say approved), then University Y will get 125% or 100%..
Kashyap Joshi
(Proprietor )
(260 Points)
Replied 27 January 2010
| Originally posted by : Amir | ||
|
Dear Faiyaz, Ya u r rite If Y spends it in house, but now my question is if University Y donates this sum of Rs. 10,000 to university Z(say approved), then University Y will get 125% or 100%.. |
|
Nothing is specified i the law about forwarding funds cases (or even in case laws). Therefore if Y donates the same to Z, then Y will get 125% deduction on Rs. 10000/-.
$h@$\/\/@t
(job)
(53 Points)
Replied 27 January 2010
INItially it was 100% only but it has been amended to 125% since last 2-3 years so amir is right
125%
CAclubindia
