Limit on salary deduction for research employees adjusted to a monthly-rate calculation for pre-commencement service in tax law.

The amendment inserts a proviso to the sub-clause setting a specific salary deduction limit where salary paid to an employee or former employee engaged in scientific research is deemed, under the Explanation on research expenditure, to have been laid out in the previous year when the business is commenced; the limit for that previous year is to be computed by a prescribed monthly rate for each month or part thereof of the employee's employment in India during that previous year and for months of research engagement in the three years immediately preceding it.

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