India - Income Tax Act 2010 - Saarc

S. 35 I.T. ACT, 1961 1.21411[Explanation.—For the purposes of this clause, “expenditure on scientificresearch”, in relation to drugs and pharmaceuticals, shall include expenditureincurred on clinical drug trial, obtaining approval from any regulatory authorityunder any Central, State or Provincial Act and filing an application for a patentunder the Patents Act, 1970 (39 of 1970).](2) No deduction shall be allowed in respect of the expenditure mentioned inclause (1) under any other provision of this Act.(3) No company shall be entitled for deduction under clause (1) unless it entersinto an agreement with the prescribed authority for co-operation in suchresearch and development facility and for audit of the accounts maintained forthat facility.(4) The prescribed authority shall submit its report in relation to the approval ofthe said facility to the Director General in such form and within such time as maybe prescribed.]12[(5) No deduction shall be allowed in respect of the expenditure referred to inclause (1) which is incurred after the 31st day of March, 13 [2012].14[(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 31st day of March, 2008.]15[(2B)(a) Where 16 [, before the 1st day of March, 1984,] an assessee has incurredany expenditure (not being in the nature of capital expenditure incurred on theacquisition of any land or building or construction of any building) on scientificresearch undertaken under a programme approved in this behalf by theprescribed authority having regard to the social, economic and industrial needsof India, he shall, subject to the provisions of this sub-section, be allowed adeduction of a sum equal to one and one-fourth times the amount of theexpenditure certified by the prescribed authority to have been so incurredduring the previous year.(b) Where a deduction has been allowed under clause (a) for any previous yearin respect of any expenditure, no deduction in respect of such expenditure shallbe allowed under clause (i) of sub-section (1) or clause (ia) of sub-section (2) forthe same or any other previous year.(c) Where a deduction is allowed for any previous year under this sub-section inrespect of expenditure represented wholly or partly by an asset, no deduction11. Inserted by the Finance Act, 2001, w.e.f. 1-4-2002.12. Inserted by the Finance (No. 2) Act, 1998, w.r.e.f. 1-4-1998.13. Substituted for “2007” by the Finance Act, 2007, w.e.f. 1-4-2008. Earlier “2007” wassubstituted for “2005” by the Finance Act, 2005, w.e.f. 1-4-2006 and “2005” was substitutedfor “2000” by the Finance Act, 1999, w.e.f. 1-4-2000.14. Inserted by the Finance Act, 2008, w.e.f. 1-4-2009.15. Inserted by the Finance (No. 2) Act, 1980, w.e.f. 1-9-1980.For guidelines for approval of scientific research programmes under this sub-section, seeTaxmann’s Direct Taxes Circulars.16. Inserted by the Finance Act, 1984, w.e.f. 1-4-1984.