Clause 5 - Amendment of Section 35 - Finance Bill, 2008

5. In section 35 of the Income-tax Act, with effect from the 1 st day of April, 2009,— ( a ) in sub-section ( 1 ), after clause ( ii ), the following clause shall be inserted, namely:— ''( iia ) an amount equal to one and one-fourth times of 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;"; ( b ) in sub-section ( 2AB ), after clause ( 5 ), the following clause shall be inserted, namely:— ''( 6 ) No deduction shall be allowed to a company approved under sub-clause (c) of clause ( iia ) of sub-section ( 1 ) in respect of the expenditure referred to in clause ( 1 ) which is incurred after the 31 st day of March, 2008.".