TaxTMI 
TaxTMI 
Expenditure on scientific research
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.... is commenced ;] (ii) ^3[an amount equal to ^63[one and one half] times of any sum paid] to a ^52[research association] which has as its object the undertaking of scientific research or to a university, college or other institution to be used for scientific research : ^4[Provided that such association, university, college or other institution for the purposes of this clause- (A) is for the time being approved, in accordance with the guidelines, in the manner and subject to such conditions as may be prescribed; and (B) such association, university, college or other institution is specified as such, by notification in the Official Gazette, by the Central Government;] ^64[Provided further that where any sum is paid to such association, university, college or other institution in a previous year relevant to the assessment year beginning on or after the 1st day of April, 2021, the deduction under this clause shall be equal to the sum so paid; ] ^49[(iia) ^65[****] any sum paid to a company to be used by it for scientific research: Provided that such company (A) is registered in India, (B) has as its ma....
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.... satisfy itself about the genuineness of the activities of the ^52[research association], university, college or other institution and that ^12[Government] may also make such inquiries as it may deem necessary in this behalf : Provided also that any ^13[notification issued, by the Central Government under clause (ii) or clause (iii), before the date on which the Taxation Laws (Amendment) Bill, 2006 receives the assent of the President, shall, at any one time, have effect for such assessment year or years, not exceeding three assessment years] (including an assessment year or years commencing before the date on which such notification is issued) as may be specified in the notification:] ^14[Provided also that where an application under the first proviso is made on or after the date on which the Taxation Laws (Amendment) Bill, 2006 receives the assent of the President, every notification under clause (ii) or clause (iii) shall be issued or an order rejecting the application shall be passed within the period of twelve months from the end of the month in which such application was received by the Central Government .] ^80[****] ^81[Provided also that every notification unde....
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....specifying the amount of donation in such manner, containing such particulars and within such time from the date of receipt of sum, as may be prescribed.] (2) For the purposes of clause (iv) of sub-section (1),- ^15[(i) in a case where such capital expenditure is incurred before the 1st day of April, 1967, one-fifth of the capital expenditure incurred in any previous year shall be deducted for that previous year; and the balance of the expenditure shall be deducted in equal instalments for each of the four immediately succeeding previous years ; (ia) in a case where such capital expenditure is incurred after the 31st day of March, 1967, the whole of such capital expenditure incurred in any previous year shall be deducted for that previous year :] ^16[Provided that no deduction shall be admissible under this clause in respect of any expenditure incurred on the acquisition of any land, whether the land is acquired as such or as part of any property, after the 29th day of February, 1984.] ^17[Explanation 1].-Where any capital expenditure has been incurred before the commencement of the business, the aggregate of the expenditure so incurred within....
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....se (ii)] is used in the business after it ceases to be used for scientific research related to that business, depreciation shall be admissible under ^23[clause (ii) of sub-section (1)] of section 32. ^24[(2A) Where ^25[,before the 1st day of March, 1984,] the assessee pays any sum ^26[(being any sum paid with a specific direction that the sum shall not be used for the acquisition of any land or building or construction of any building)] to a scientific research association or university or college or other institution referred to in clause (ii) of sub-section (1) ^27[or to a public sector company] to be used for scientific research undertaken under a programme approved in this behalf by the prescribed authority having regard to the social, economic and industrial needs of India, then,- (a) there shall be allowed a deduction of a sum equal to one and one-third times the sum so paid ; and (b) no deduction in respect of such sum shall be allowed under clause (ii) of sub-section (1) for the same or any other assessment year.] ^28[Explanation.-For the purposes of this sub-section, "public sector company" shall have the same meaning as in clause (b) of the Explana....
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....h manner as may be prescribed ; (b) "University" shall have the same meaning as in Explanation to clause (ix) of section 47 ; (c) "Indian Institute of Technology" shall have the same meaning as that of "Institute" in clause (g) of section 3 of the Institutes of Technology Act, 1961 (59 of 1961)]; ^36[(d) "specified person" means such person as is approved by the prescribed authority.] ^37[(2AB)(1) Where a company engaged in the business of ^38[bio-technology or in] ^51[any business of manufacture or production of any article or thing, not being an article or thing specified in the list of the Eleventh Schedule] incurs any expenditure on scientific research (not being expenditure in the nature of cost of any land or building) on in-house research and development facility as approved by the prescribed authority, then, there shall be allowed a deduction of ^39[a sum equal to ^69[one and one-half times] of the expenditure] so incurred. ^70[Provided that where such expenditure on scientific research (not being expenditure in the nature of cost of any land or building) on in-house research and development facility is incurred in a previous year rele....
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....of sub-section (2) for the same or any other previous year. (c) Where a deduction is allowed for any previous year under this sub-section in respect of expenditure represented wholly or partly by an asset, no deduction shall be allowed in respect of that asset under ^46[clause (ii) of sub-section (1)] of section 32 for the same or any subsequent previous year. (d) Any deduction made under this sub-section in respect of any expenditure on scientific research in excess of the expenditure actually incurred shall be deemed to have been wrongly made for the purposes of this Act if the assessee fails to furnish within one year of the period allowed by the prescribed authority for completion of the programme, a certificate of its completion obtained from that authority, and the provisions of sub-section (5B) of section 155 shall apply accordingly.] ^47[(3) If any question arises under this section as to whether, and if so, to what extent, any activity constitutes or constituted, or any asset is or was being used for, scientific research, the Board shall refer the question to- (a) the Central Government, when such question relates to any activity under clauses (ii) and (i....
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....commenced ; (ii) any sum paid to a scientific research as sociation which has as its object the undertaking scientific research or to a university, college or other institution to be used for scientific research : Provided that such association, university, college or institution is for the time being approved for the purposes of this clause by the prescribed authority; (iii) any sum paid to a university, college or other institution to be used for research in social science or statistical research related to the class of business carried on, being a university, college or institution which is for the time being approved for the purposes of this clause by the prescribed authority; (iv) in respect of any expenditure of a capital nature on scientific research related to the business carried on by the assessee, such deduction as may be admissible under the provisions of sub-section (2). (2) For the purposes of clause (iv) of sub-section (1),- (i) in a case where such capital expenditure is incurred before the 1st day of April, 1967, one-fifth of the capital expenditure incurred in any previous year shall be deducted for that previo....
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....the value of the asset at the time of the cessation ; and if the asset is sold, without having been used for other purposes, in a previous year subsequent to the year of cessation, and the sale price falls short of the value of the asset taken into account at the time of cessation, an amount equal to the deficiency shall be allowed as a deduction for the previous year in which the sale took place ; (iv) where a deduction is allowed for any previous year under this section in respect of expenditure represented wholly or partly by an asset, no deduction shall be allowed under clauses (i), (ii), (iia), (iii) and (vi) of sub-section (1) or under sub-section (1A) of section 32 for the same or any other previous year in respect of that asset ; (v) where the asset mentioned in clause (ii) is used in the business after it ceases to be used for scientific research related to that business, depreciation shall be admissible under clauses (i), (ii) and (iii) of sub-section (1) of section 32. (2A) Where, before the 1st day of March, 1984, the assessee pays any sum (being any sum paid with a specific direction that the sum shall not be used for the acquisition of any l....
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....thin one year of the period allowed by the prescribed authority for completion of the programme, a certificate of its completion obtained from that authority, and the provisions of sub-section (5B) of section 155 shall apply accordingly. (3) If any question arises under this section as to whether, and if so, to what extent, any activity constitutes or constituted, or any asset is or was being used for, scientific research, the Board shall refer the question to the prescribed authority, whose decision shall be final. (4) The provisions of sub-section (2) of section 32 shall apply in relation to deductions allowable under clause (iv) of sub-section (1) as they apply in relation to deductions allowable in respect of depreciation. (5) Where, in a scheme of amalgamation, the amalgamating company sells or otherwise transfers to the amalgamated company (being an Indian company) any asset representing expenditure of a capital nature on scientific research,- (i) the amalgamating company shall not be allowed the deduction under clause (ii) or clause (iii) of sub-section (2) ; and (ii) the provisions of this section shall, as far as may be, apply t....
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....ibed authority" 11. Substituted vide Section 15 of the Finance Act, 1999 w.e.f. 01-04-2000 before it was read as, "prescribed authority" 12. Substituted vide Section 5 of the Taxation Laws (Amendment) Act, 2006 w.e.f. 01-04-2006 before it was read as, "authority" 13. Substituted vide Section 5 of the Taxation Laws (Amendment) Act, 2006 w.e.f. 01-04-2006 before it was read as, "notification issued by the Central Government under clause (ii) or clause (iii) shall, at any one time, have effect for such assessment year or years, not exceeding three assessment years" Earlier, Amended vide Section 15 of the Finance Act, 1999 w.e.f. 01-04-2000 14. Inserted vide Section 5 of the Taxation Laws (Amendment) Act, 2006 w.e.f. 01-04-2006 15. Substituted vide Third Schedule of the Finance (No. 2) Act, 1967 w.e.f. 01-04-1968 before it was read as, "(i) one-fifth of the capital expenditure incurred in any previous year shall be deducted for that previous year; and the balance of the expenditure shall be deducted in equal instalments for each of the four immediately succeeding previous years. ....
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....in the prescribed form and manner to the prescribed authority : Provided further that the prescribed authority may, before granting approval, call for such documents or information from the National Laboratory or the University or the Indian Institute of Technology as it thinks necessary in order to satisfy itself about the genuineness of the activities relating to scientific research of such Laboratory or University or Institute, as the case may be." Earlier, Amended vide Section 13 of the Finance Act, 1994 w.e.f. 01-04-1995 33. Inserted vide Section 5 of the Taxation Laws (Amendment) Act, 2006 w.e.f. 01-04-2006 34. Substituted vide Section 13 of the Finance Act, 1994 w.e.f. 01-04-1995 before it was read as, "Explanation.-For the purposes of this sub-section, "National Laboratory" means a scientific laboratory functioning at the national level under the aegis of the Indian Council of Agricultural Research, the Indian Council of Medical Research or the Council of Scientific and Industrial Research and which is approved as a National Laboratory by the prescribed authority in such manner as may be prescribed." 35. Renum....
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....lectronic equipments, computers, telecommunication equipments, chemicals or any other article or thing notified by the Board" 52. Substituted vide Section 9 of the Finance Act, 2010 w.e.f. 01-04-2011 before it was read as, "scientific research association" 53. Substituted vide Section 9 of the Finance Act, 2010 w.e.f. 01-04-2011 before it was read as, "one and one-fourth" 54. Substituted vide Section 9 of the Finance Act, 2010 w.e.f. 01-04-2011 before it was read as, "any sum paid to a university" 55. Substituted vide Section 9 of the Finance Act, 2010 w.e.f. 01-04-2011 before it was read as, "such university" 56. Substituted vide Section 5 of the Finance Act, 2011 w.e.f. 01-04-2012 before it was read as, "one and three-fourth" Earlier, Substituted vide Section 9 of the Finance Act, 2010 w.e.f. 01-04-2011 before it was read as, "one and one-fourth" 57. Substituted vide Section 9 of the Finance Act, 2010 w.e.f. 01-04-2011 before it was read as, "one and one-half" 58. Substituted vide Section 8 of the Finance Act, 2012 w.e.f. 01-04-2013 before it was read as, "the 31st day of March, 2012" 59. Inserted vide S....
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.... Substituted vide Section 4 of the The Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 w.e.f. 01-06-2020 before it was read as, ^"73[clause (ii) or clause (iii) or to a company referred to in clause (iia)]" 78. Substituted vide Section 4 of the The Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 w.e.f. 01-04-2021 before it was read as, ^"76[to which clause (ii) or clause (iii)]" 79. Substituted vide Section 4 of the The Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 w.e.f. 01-04-2021 before it was read as, "^77[clause (ii) or clause (iii)]" 80. Substituted vide Section 4 of the The Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 w.e.f. 01-06-2020 before it was read as, ^"74[Provided also that every notification under clause (ii) or clause (iii) in respect of the research association, university, college or other institution or under clause (iia) in respect of the company issued on or before ....