Deduction u/s 35 of IT Act

Class presentation

1. INCOME TAX ACT Deduction Under Section - 35

2. EXPENDITURE ON SCIENTIFIC RESEARCH Scientific Research - Any activity for the extension of knowledge. May be Carried on : By the assessee , relating to his Business, Or O utsource to agencies engaged in Scientific research work.

3. A. In -house scientific Research An assessee can claim Expenditure as Deduction : Revenue expenditure Capital expenditure

4. B. SALE OF ASSET USED FOR SCIENTIFIC RESEARCH Sold without having been used for other purposes Net sale price (or) Cost of asset , whichever is less. Sold after having been used for business F ull amount is allowed Deduction.

5. C. Unabsorbed capital expenditure on scientific research Deduction allowed to extent of profit Unclaimed capital expenditure will deemed to expenditure of the following previous year. There cannot be business loss due to capital expenditure.