Amendment of section 35.
08. In section 35 of the Income-tax Act, in sub-section (2AB), in clause (5), for the words, figures and letters “the 31st day of March, 2012”, the words, figures and letters “the 31st day of March, 2017” shall be substituted with effect from the 1st day of April, 2013.
Notes on Clauses:
Clause 8 of the Bill seeks to amend section 35 of the Income-tax Act relating to expenditure on scientific research.
The existing provisions contained in sub-section (2AB) of the aforesaid section 35 provide that where a company engaged in the business of bio-technology or in any business of manufacture or production of any article or thing, not being an article or thing specified in the list of 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 a sum equal to two times of the expenditure so incurred. However, no deduction is allowable under the said sub-section in respect of such expenditure incurred after 31st March, 2012.
It is proposed to amend clause (5) of the aforesaid sub-section (2AB) so as to allow deduction in respect of expenditure incurred up to 31st March, 2017.
This amendment will take effect from 1st April, 2013 and will, accordingly, apply in relation to the assessment year 2013-2014 and subsequent assessment years up to assessment year 2017-2018.
