Under the provisions of section 35, a person carrying on business or profession, is entitled to the deduction of the expenditure (revenue as well as capital) incurred by it on scientific research. In specified cases, the weighted deduction is given to the person incurring the expenditure. For providing further impetus to the activities of research, the weighted deduction has been enhanced as mentioned below:
| Nature of Expenditure | Applicable Section |
Original Weight for deduction |
Proposed weight for deduction |
| Contribution to an approved research
association, university, college or other institution [Research Social Science and |
35 (1)(ii) | 125 % | 175 % |
| Payment to a National Laboratory, University, IIT or specified person for scientific research | 35 (2AA) | 125 % | 175 % |
| For in-house research by a person engaged in the business of bio-technology or any business of manufacture of an article or thing other than XIth Schedule | 35 (2AB) | 150 % | 200 % |
Further, as a general amendment to various sections [10(21), 35, 80GGA and 139], the institutions carrying on social science research and statistical research has been placed at parity with the institutions and organizations carrying on scientific research.
