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
Statistical Research proposed to be added]

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.

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