Prescribed conditions relating to maintenance of accounts, audit etc to be fulfilled by the approved in-house R&D facility

[Admin TMI]

Question - What are the prescribed conditions relating to maintenance of accounts, audit etc to be fulfilled by the approved in-house RandD facility in Finance Bill 2015 ?

AI Summary

Proposed Amendments to Section 35(2AB) Enhance Monitoring of R&D Tax Deductions for Biotechnology and Manufacturing Firms. The discussion addresses the conditions for maintaining accounts and audits for approved in-house R&D facilities as per the Finance Bill 2015. Under section 35(2AB) of the Income Tax Act, companies in biotechnology or manufacturing can claim a 200% weighted deduction on R&D expenses, excluding land or building costs, if they have an agreement with the Department of Scientific and Industrial Research (DSIR) and maintain separate audited accounts. Amendments propose enhanced monitoring by involving the Principal Chief Commissioner or Chief Commissioner and will be effective from April 1, 2016, applicable to the assessment year 2016-17 onwards.