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Section 41(3) - Sale of Assets used for Scientific Research - Income Tax - Ready Reckoner - Income TaxExtract Section 41(3) : Sale of Assets Used for Scientific Research Where any capital asset used in scientific research is sold without having been used for other purposes and the sale proceeds, together with the deduction allowed under section 35 , exceeds the amount of the capital expenditure, then such surplus or the amount of deduction allowed, whichever is less, is chargeable to tax as business income in the year in which the sale took place. NOTE:- Where the moneys payable in respect of any asset referred to in this sub-section become due in a previous year in which the business is no longer in existence, the provisions of this sub-section shall apply as if the business is in existence in that previous year. Section 41(3) is applicable only if an asset is sold without having been used for other purposes. If an asset which is initially purchased for the purpose of scientific research is utilised for business purpose on completion of scientific research, and later on it is sold/transferred, then section 41(3) is not applicable.
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