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6. Sec. 35 : Expenditure On Scientific Research

Deduction allowed is on both revenue and capital expenditure . in case of in-house research it is either 100% or 150% . Contribution to outsiders deduction allowed is 125%.

 Deduction Allowed U/Sec. 35 : Expenditure On Scientific Research


Section 35(1)(i). Revenue Expenditure

Section 35(2). Capital Expenditure

Any revenue expenditure laid out or expended on scientific research related to the business is allowed ads deduction.

Ø Purchase of Plant and Machinery is allowed as Deduction

E.g. Salary paid to Research Personnel,  Material Inputs used for Scientific Research etc.

Ø Purchase or Construction Cost of Building (excluding Investment in Land or any interest on borrowed capital used for purchase of Land) is allowed as Deduction.


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