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TMI BlogExpenditure on scientific researchX X X X Extracts X X X X X X X X Extracts X X X X ..... mmenced ; ] (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 dev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icate 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ner 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 r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r: 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, 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... il, 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. Omit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 020 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 year ..... 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