Section 35 - Expenditure on scientific research - Income-tax Act, 1961

1 [Expenditure on scientific research. 35. (1) In respect of expenditure on scientific research, the following deductions shall be allowed- ( i ) any expenditure (not being in the nature of capital expenditure) laid out or expended on scientific research related to the business. 2 [Explanation.- Where any such expenditure has been laid out or expended before the commencement of the business (not being expenditure laid out or expended before the 1st day of April, 1973) on payment of any salary [as defined in Explanation 2 below sub-section (5) of section 40A] to an employee engaged in such scientific research or on the purchase of materials used in such scientific research, the aggregate of the expenditure so laid out or expended within the three years immediately preceding the commencement of the business shall, to the extent it is certified by the prescribed authority to have been laid out or expended on such scientific research, be deemed to have been laid out or expended in the previous year in which the business is commenced ; ] (ii) 3 [ an amount equal to 63 [one and onehalf] 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 main object the scientific research and development, (C) is, for the purposes of this clause, for the time being approved by the prescribed authority in the prescribed manner, and (D) fulfils such other conditions as may be prescribed; ] 5 [ (iii) 66 [***] 54 [any sum paid ] to a research association which has as its object the undertaking of research in social science or statistical research or to a university], college or other institution to be used for research in social science or statistical research : 7 [Provided that 55 [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) 55 [such association, university], college or other institution is specified as such, by notification in the Official Gazette, by the Central Government . ] 8 [Explanation .-The deduction, to which the assessee is entitled in respect of any sum paid to a[ research association], university, college or other institution 78 [ to which clause (ii) or clause (iii) or to a company to which clause (iia) ] applies, shall not be denied merely on the ground that, subsequent to the payment of such sum by the assessee, the approval granted to the association, university, college or other institution referred to in 79 [ clause (ii) or clause (iii) or to a company referred to in clause (iia) ] has been withdrawn; ] (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) : 9 [Provided that the 52 [research association], university, college or other institution referred to in clause (ii) or clause (iii) shall make an application in the prescribed form and manner to the 10 [ Central Government ] for the purpose of grant of approval, or continuance thereof, under clause (ii) or, as the case may be, clause (iii) : Provided further that the 11 [ Central Government ] may, before granting approval under clause (ii) or clause (iii), call for such documents (including audited annual accounts) or information from the 52 [research association], university, college or other institution as it thinks necessary in order to 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 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 the date on which this proviso has come into force, shall be deemed to have been withdrawn unless such research association, university, college or other institution referred to in clause (ii) or clause (iii) or the company referred to in clause (iia) makes an intimation in such form and manner, as may be prescribed, to the prescribed income-tax authority within three months from the date on which this proviso has come into force, and subject to such intimation the notification shall be valid for a period of five consecutive assessment years beginning with the assessment year commencing on or after the 1st day of April, 2022: Provided also that any notification issued by the Central Government under clause (ii) or clause (iia) or clause (iii), after the date on which the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Bill, 2020 receives the assent of the President, shall, at any one time, have effect for such assessment year or years, not exceeding five assessment years as may be specified in the notification. ] 82 [ **** ] 83 [ (1A) Notwithstanding anything contained in sub-section (1), 84 [ the deduction in respect of any sum paid to the research association, university, college or other institution referred to in clause (ii) or clause (iii), or the company referred to in clause (iia) of sub-section (1), shall not be allowed ] , unless such research association, university, college or other institution or company- (i) prepares such statement for such period as may be prescribed and deliver or cause to be delivered to the said prescribed income-tax authority or the person authorised by such authority such statement in such form, verified in such manner, setting forth such particulars and within such time, as may be prescribed: Provided that such research association, university, college or other institution or the company may also deliver to the prescribed authority a correction statement for rectification of any mistake or to add, delete or update the information furnished in the statement delivered under this sub-section in such form and verified in such manner as may be prescribed; (ii) furnishes to the donor, a certificate 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 yearshall 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 the three years immediately preceding the commencement of the business shall be deemed to have been incurred in the previous year in which the business is commenced. 18 [Explanation 2.- For the purposes of this clause,- (a) land includes any interest in land ; and (b) the acquisition of any land shall be deemed to have been made by the assessee on the date on which the instrument of transfer of such land to him has been registered under the Registration Act, 1908 (16 of 1908), or where he has taken or retained the possession of such land or any part thereof in part performance of a contract of the nature referred to in section 53A of the Transfer of Property Act, 1882 (4 of 1882), the date on which he has so taken or retained possession of such land or part ; ] (ii) notwithstanding anything contained in clause (i), where an asset representing expenditure of a capital nature 19 [ incurred before the 1st day of April, 1967 ,] ceases to be used in a previous year for scientific research related to the business and the value of the asset at the time of the cessation, together with the aggregate of deductions already allowed under clause (i) falls short of the said expenditure, then- (a) there shall be allowed a deduction for that previous year of an amount equal to such deficiency, and (b) no deduction shall be allowed under that clause for that previous year or for any subsequent previous year ; (iii) if the asset mentioned in clause (ii) is sold, without having been used for other purposes, in the year of cessation, the sale price shall be taken to be 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 20 [ clause (ii) of sub-section (1) ] of section 32 for the same 21 [ or any other ] previous year in respect of that asset ; (v) where the asset 22 [ 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 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 Explanation below sub-section (2B) of section 32A. ] 29. [ (2AA)Where the assessee pays any sum to a National Laboratory 30 [ or a 31 [ University or an Indian Institute of Technology or a specified person ] with a specific direction that the said sum shall be used for scientific research undertaken under a programme approved in this behalf by the prescribed authority, then- (a) there shall be allowed a deduction of a sum equal to 67 [ one and one-half times ] the sum so paid ; and (b) no deduction in respect of such sum shall be allowed under any other provision of this Act : 32 [Provided that the prescribed authority shall, before granting approval, satisfy itself about the feasibility of carrying out the scientific research and shall submit its report to the 60 [ Principal Chief Commissioner or Chief Commissioner or] 59 [Principal Director General or] Director General in such form as may be prescribed. ] 68 [Provided further that where any sum is paid to such National Laboratory or university or Indian Institute of Technology or specified person in a previous year relevant to the assessment year beginning on or after the 1st day of April, 2021, the deduction under this sub-section shall be equal to the sum so paid. ] 33 [Explanation 1 .-The deduction, to which the assessee is entitled in respect of any sum paid to a National Laboratory, University, Indian Institute of Technology or a specified person for the approved programme referred to in this sub-section, shall not be denied merely on the ground that, subsequent to the payment of such sum by the assessee, the approval granted to,- (a) such Laboratory, or specified person has been withdrawn; or (b) the programme, undertaken by the National Laboratory, University, Indian Institute of Technology or specified person, has been withdrawn .] 34 [Explanation 35 [ 2 ] .-For the purposes of this section,- (a) 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, the Council of Scientific and Industrial Research, the Defence Research and Development Organisation, the Department of Electronics, the Department of Bio-Technology or the Department of Atomic Energy and which is approved as a National Laboratory by the prescribed authority in such 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 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 expenditure so incurred. ] 40 [Explanation.- For the purposes of this clause, expenditure on scientific research , in relation to drugs and pharmaceuticals, shall include expenditure incurred on clinical drug trial, obtaining approval from any regulatory authority under any Central, State or Provincial Act and filing an application for a patent under the Patents Act, 1970 (39 of 1970). ] (2) No deduction shall be allowed in respect of the expenditure mentioned in clause (1) under any other provision of this Act. (3) No company shall be entitled for deduction under clause (1) unless it enters into an agreement with the prescribed authority for co-operation in such research and development facility and 62 [ fulfils such conditions with regard to maintenance of accounts and audit thereof and furnishing of reports in such manner as may be prescribed]. (4) The prescribed authority shall submit its report in relation to the approval of the said facility to the 61 [Principal Chief Commissioner or Chief Commissioner or] 59 [Principal Director General or] Director General in such form and within such time as may be prescribed .] (5) 71 [***] 50 [ (6) No deduction shall be allowed to a company approved under subclause (C) of clause (iia) of sub-section (1) in respect of the expenditure referred to in clause (1) which is incurred after the 31st day of March, 2008. ] 44 [ (2B)(a) Where 45 [, before the 1st day of March, 1984, ] an assessee has incurred any expenditure (not being in the nature of capital expenditure incurred on the acquisition of any land or building or construction of any building) on 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, he shall, subject to the provisions of this sub-section, be allowed a deduction of a sum equal to one and one-fourth times the amount of the expenditure certified by the prescribed authority to have been so incurred during the previous year. (b) Where a deduction has been allowed under clause (a) for any previous year in respect of any expenditure, no deduction in respect of such expenditure shall be allowed under clause (i) of sub-section (1) or clause (ia) 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 (iii) of sub-section (1), and its decision shall be final; (b) the prescribed authority, when such question relates to any activity other than the activity specified in clause (a), 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. 48 [ (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 to the amalgamated company as they would have applied to the amalgamating company if the latter had not so sold or otherwise transferred the asset .]] *************************** Notes :- 1. Reintroduced with modification by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989. Earlier section 35 was omitted by the Direct Tax Laws (Amendment) Act, 1987, with effect from the same date. 2. Inserted by the Direct Taxes (Amendment) Act, 1974, w.e.f. 1-4-1974. 3. Substituted for any sum paid by the Finance Act, 1999, w.e.f. 1-4-2000. 4. Substituted by the Taxation Laws (Amendment) Act, 2006, w.r.e.f. 1-4-2006. Prior to its substitution, proviso, as amended by the Finance Act, 1999, w.e.f. 1-4-2000 and Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989, read as under : Provided that such association, university, college or institution is for the time being approved for the purposes of this clause by the Central Government by notification in the Official Gazette; 5. Substituted by the Finance (No. 2) Act, 1991, w.e.f. 1-4-1992. Prior to substitution, clause (iii) was amended by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989. 6. Substituted for any sum paid by the Finance Act, 1999, w.e.f. 1-4-2000. 7. Substituted by the Taxation Laws (Amendment) Act, 2006, w.r.e.f. 1-4-2006. Prior to its substitution, proviso, as amended by the Finance Act, 1999, w.e.f. 1-4-2000, read as under: Provided that such university, college or institution is for the time being approved for the purposes of this clause by the Central Government by notification in the Official Gazette; 8. Inserted by the Taxation Laws (Amendment) Act, 2006, w.r.e.f. 1-4-2006. 9. Inserted by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989. 10. Substituted for prescribed authority by the Finance Act, 1999, w.e.f. 1-4-2000. 11. Substituted for prescribed authority by the Finance Act, 1999, w.e.f. 1-4-2000. 12. Substituted for authority by the Taxation Laws (Amendment) Act, 2006, w.r.e.f. 1-4-2006. 13. Substituted for 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 by the Taxation Laws (Amendment) Act, 2006, w.r.e.f. 1-4-2006 . Earlier the proviso was amended by the Finance Act, 1999, w.e.f.1-4-2000. 14. Inserted by the Taxation Laws (Amendment) Act, 2006, w.r.e.f. 1-4-2006. 15. Substituted for clause (i) by the Finance (No. 2) Act, 1967, w.e.f. 1-4-1968. 16. Inserted by the Finance Act, 1984, w.e.f. 1-4-1984. 17. Existing Explanation renumbered as Explanation 1 by the Finance Act, 1984, w.e.f. 1-4-1984. 18. Inserted by the Finance Act, 1984, w.e.f. 1-4-1984. 19. Inserted by the Finance (No. 2) Act, 1967, w.e.f. 1-4-1968. 20. Substituted for clauses (i), (ii), (iia), (iii) and (iv) of sub-section (1) or under sub-section (1A) by the Taxation Laws (Amendment Miscellaneous Provisions) Act, 1986, w.e.f. 1-4-1988. 21. Inserted by the Finance (No. 2) Act, 1980, w.r.e.f. 1-4-1962. 22. Inserted by the Finance (No. 2) Act, 1967, w.e.f. 1-4-1968. 23. Substituted for clauses (i), (ii) and (iii) of sub-section (1) by the Taxation Laws (Amendment Miscellaneous Provisions) Act, 1986, w.e.f. 1-4-1988. 24. Inserted by the Direct Taxes (Amendment) Act, 1974, w.e.f. 1-4-1974. 25. Inserted by the Finance Act, 1984, w.e.f. 1-4-1984. 26. Inserted by the Finance (No. 2) Act, 1983, w.e.f. 1-4-1984. 27. Inserted by the Finance (No. 2) Act, 1980, w.e.f. 1-9-1980. 28. Inserted by the Finance (No. 2) Act, 1980, w.e.f. 1-9-1980. 29. Inserted by the Finance Act, 1993, w.e.f. 1-4-1994. 30. Inserted by the Finance Act, 1994, w.e.f. 1-4-1995. 31. Substituted for University or an Indian Institute of Technology by the Finance Act, 2001, w.e.f. 1-4-2002. 32. Substituted for the following provisos by the Finance (No. 2) Act, 1996, w.e.f. 1-10-1996. Prior to their substitution, the said provisos, as amended by the Finance Act, 1994, w.e.f. 1-4-1995, read as under : Provided that every National Laboratory or University or Indian Institute of Technology desirous of obtaining approval under this sub-section shall make an application 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. 33. Inserted by the Taxation Laws (Amendment) Act, 2006, w.r.e.f . 1-4-2006. 34. Substituted by the Finance Act, 1994, w.e.f. 1-4-1995. Prior to its substitution, the Explanation, as inserted by the Finance Act, 1993, w.e.f. 1-4-1994, read as under : 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. Renumbered as Explanation 2 by the Taxation Laws (Amendment) Act, 2006, w.r.e.f. 1-4-2006. 36. Inserted by the Finance Act, 2001, w.e.f. 1-4-2002. 37. Inserted by the Finance Act, 1997, w.e.f. 1-4-1998. 38. Inserted by the Finance Act, 2001, w.e.f. 1-4-2002. 39. Substituted for a sum equal to one and one-fourth times of the expenditure by the Finance Act, 2000, w.e.f. 1-4-2001. 40. Inserted by the Finance Act, 2001, w.e.f. 1-4-2002. 41. Inserted by the Finance (No. 2) Act, 1998, w.r.e.f. 1-4-1998. 42. Figures 2012 shall be substituted for 2007 by the Finance Act, 2007, w.e.f. 1-4-2008. 43. Substituted for 2005 by the Finance Act, 2005, w.e.f. 1-4-2006. Earlier 2005 was substituted for 2000 by the Finance Act, 1999, w.e.f. 1-4-2000. 44. Inserted by the Finance (No. 2) Act, 1980, w.e.f. 1-9-1980. 45. Inserted by the Finance Act, 1984, w.e.f. 1-4-1984. 46. Substituted for clauses (i), (ii), (iia) and (iii) of sub-section (1) or under sub-section (1A) by the Taxation Laws (Amendment Miscellaneous Provisions) Act, 1986, w.e.f. 1-4-1988. 47. Substituted by the Finance Act, 1999, w.e.f. 1-4-2000. Prior to its substitution, sub-section (3) read as under : (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. 48. Inserted by the Finance (No. 2) Act, 1967, w.e.f. 1-4-1967. 49 . Inserted by the Finance Act, 2008, w.e.f. 1-4-2009. 50. Inserted by the Finance Act, 2008, w.e.f. 1-4-2009. 51. Substituted vide vide Finance (No. 2) Act, 2009 with effect from 1-4-2010, before it was read as, the business of manufacture or production of any drugs, pharmaceuticals, electronic equipments, computers, telecommunication equipments, chemicals or any other article or thing notified by the Board 52. In sub-section (1) for the words scientific research association , wherever they occur, the words research association has been substituted vide Finance Act, 2010 w.e.f.1st day of April, 2011. 53. in clause (ii), for the words one and one-fourth , the words one and three-fourth has been substituted vide Finance Act, 2010 w.e.f.1st day of April, 2011. 54. in clause (iii) for the words any sum paid to a university , the words any sum paid to a research association which has as its object the undertaking of research in social science or statistical research or to a university has been substituted vide Finance Act, 2010 w.e.f.1st day of April, 2011. 55. In the proviso, for the words such university , at both the places where they occur, the words such association, university has been substituted vide Finance Act, 2010 w.e.f.1st day of April, 2011. 56. In sub-section (2AA), in clause (a), for the words one and one-fourth , the words one and three-fourth has been substituted vide Finance Act, 2010 w.e.f.1st day of April, 2011. Further, words one and three-fourth , the word two substituted vide Finance Act, 2011 w.e.f. 1st day of April, 2012. 57. In sub-section (2AB), in clause (1), for the words one and one-half , the word two has been substituted vide Finance Act, 2010 w.e.f.1st day of April, 2011. 58. Substituted vide Finance Act, 2012, w.e.f. 1st day of April, 2013, before it was read as:- the 31st day of March, 2012 59. Inserted vide THE FINANCE (No. 2) ACT, 2014 w.e.f. 1st day of June, 2013. 60. Inserted vide THE FINANCE ACT, 2015 w.e.f. 1st day of April, 2016 61. Inserted vide THE FINANCE ACT, 2015 w.e.f. 1st day of April, 2016 62. Substituted vide THE FINANCE ACT, 2015 w.e.f. 1st day of April, 2016, before it was read as for audit of accounts maintained for that facility 63. Substituted vide THE FINANCE ACT, 2016 w.e.f. 1st day of April, 2018 , before it was read as, 53 [ one and three-fourth] 64. Inserted vide THE FINANCE ACT, 2016 w.e.f. 1st day of April, 2018 65. Omitted vide THE FINANCE ACT, 2016 w.e.f. 1st day of April, 2018 , before it was read as, an amount equal to one and one-fourth times of 66. Omitted vide THE FINANCE ACT, 2016 w.e.f. 1st day of April, 2018 , before it was read as, 6 [ an amount equal to one and one-fourth times of 67. Substituted vide THE FINANCE ACT, 2016 w.e.f. 1st day of April, 2018 , before it was read as, 56 [two] 68. Inserted vide THE FINANCE ACT, 2016 w.e.f. 1st day of April, 2018 69. Substituted vide THE FINANCE ACT, 2016 w.e.f. 1st day of April, 2018 , before it was read as, 57 [two] times 70. Inserted vide THE FINANCE ACT, 2016 w.e.f. 1st day of April, 2018 71. Omitted vide THE FINANCE ACT, 2016 w.e.f. 1st day of April, 2018 , before it was read as, 41 [ ( 5 ) No deduction shall be allowed in respect of the expenditure referred to in clause ( 1 ) which is incurred after the 58 [ the 31st day of March, 2017 ] 72. Substituted vide Finance Act, 2020 dated 27-03-2020 w.e.f. 01-06-2020 before it was read as to which clause ( ii ) or clause ( iii ) 73. Substituted vide Finance Act, 2020 dated 27-03-2020 w.e.f. 01-06-2020 before it was read as clause ( ii ) or clause ( iii ) 74. Inserted vide Finance Act, 2020 dated 27-03-2020 w.e.f. 01-06-2020 75. Inserted vide Finance Act, 2020 dated 27-03-2020 w.e.f. 01-06-2020 76. Substituted vide THE TAXATION AND OTHER LAWS (RELAXATION AND AMENDMENT OF CERTAIN PROVISIONS) ACT, 2020 dated 29-09-2020 w.e.f. 01-06-2020 before it was read as 72 [ to which clause (ii) or clause (iii) or to a company to which clause (iia) ] 77. Substituted vide THE TAXATION AND OTHER LAWS (RELAXATION AND AMENDMENT OF CERTAIN PROVISIONS) ACT, 2020 dated 29-09-2020 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 THE TAXATION AND OTHER LAWS (RELAXATION AND AMENDMENT OF CERTAIN PROVISIONS) ACT, 2020 dated 29-09-2020 w.e.f. 01-04-2021 before it was read as 76 [ to which clause (ii) or clause (iii) ] 79. Substituted vide THE TAXATION AND OTHER LAWS (RELAXATION AND AMENDMENT OF CERTAIN PROVISIONS) ACT, 2020 dated 29-09-2020 w.e.f. 01-04-2021 before it was read as 77 [ clause (ii) or clause (iii) ] 80. Substituted vide THE TAXATION AND OTHER LAWS (RELAXATION AND AMENDMENT OF CERTAIN PROVISIONS) ACT, 2020 dated 29-09-2020 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 the date on which this sub-section has come into force, shall be deemed to have been withdrawn unless such research association, university, college or other institution referred to in clause (ii) or clause (iii) or the company referred to in clause (iia) makes an intimation in such form and manner, as may be prescribed, to the prescribed income-tax authority within three months from the date on which this proviso has come into force, and subject to such intimation the notification shall be valid for a period of five consecutive assessment years beginning with the assessment year commencing on or after the 1st day of April, 2021: Provided also that any notification issued by the Central Government under clause (ii) or clause (iia) or clause (iii), after the date on which the Finance Bill, 2020 receives the assent of the President, shall, at any one time, have effect for such assessment year or years, not exceeding five assessment years as may be specified in the notification. ] 81. Inserted vide THE TAXATION AND OTHER LAWS (RELAXATION AND AMENDMENT OF CERTAIN PROVISIONS) ACT, 2020 dated 29-09-2020 w.e.f. 01-04-2021 82. Substituted vide THE TAXATION AND OTHER LAWS (RELAXATION AND AMENDMENT OF CERTAIN PROVISIONS) ACT, 2020 dated 29-09-2020 w.e.f. 01-06-2020 before it was read as 75 [ (1A) Notwithstanding anything contained in sub-section (1), the research association, university, college or other institution referred to in clause (ii) or clause (iii) or the company referred to in clause (iia) of sub-section (1) shall not be entitled to deduction under the respective clauses of the said sub-section, unless such research association, university, college or other institution or company (i) prepares such statement for such period as may be prescribed and deliver or cause to be delivered to the said prescribed income-tax authority or the person authorised by such authority such statement in such form, verified in such manner, setting forth such particulars and within such time, as may be prescribed: Provided that such research association, university, college or other institution or the company may also deliver to the prescribed authority a correction statement for rectification of any mistake or to add, delete or update the information furnished in the statement delivered under this sub-section in such form and verified in such manner as may be prescribed; and (ii) furnishes to the donor, a certificate 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. ] 83. Inserted vide THE TAXATION AND OTHER LAWS (RELAXATION AND AMENDMENT OF CERTAIN PROVISIONS) ACT, 2020 dated 29-09-2020 w.e.f. 01-04-2021 84. Substituted vide Finance Act, 2022 w.e.f. 01-04-2021 before it was read as the research association, university, college or other institution referred to in clause (ii) or clause (iii) or the company referred to in clause (iia) of sub-section (1) shall not be entitled to deduction under the respective clauses of the said sub-section