In house R&D approval conditions require separate audited accounts and restrict eligible expenditures for weighted tax deduction. Approval under Section 35(2AB) for in house R&D centres is conditioned on statutory permits, DSIR recognition for each centre, a cooperation agreement with the Prescribed Authority, maintenance of separate books and annual statutory audit for each approved centre, and submission of audited accounts with prescribed information. Only expenditures directly attributable to approved R&D qualify for the weighted tax deduction; many general, non R&D, intangible capitalized costs and certain manpower categories are excluded. Grants and sales realisations must be credited and offset against claimed R&D deductions.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
In house R&D approval conditions require separate audited accounts and restrict eligible expenditures for weighted tax deduction.
Approval under Section 35(2AB) for in house R&D centres is conditioned on statutory permits, DSIR recognition for each centre, a cooperation agreement with the Prescribed Authority, maintenance of separate books and annual statutory audit for each approved centre, and submission of audited accounts with prescribed information. Only expenditures directly attributable to approved R&D qualify for the weighted tax deduction; many general, non R&D, intangible capitalized costs and certain manpower categories are excluded. Grants and sales realisations must be credited and offset against claimed R&D deductions.
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