Income Tax Act, 2025
Section 10: Subs. by Act 14 of 2001, s. 23, for “engaged in the business of” (w.e.f. 12002).
10. Subs. by Act 14 of 2001, s. 23, for “engaged in the business of” (w.e.f. 12002).
11. Subs. by Act 33 of 2009, s. 12, for “the business of manufacture or production of any drugs, pharmaceuticals, electronic
equipments, computers, telecommunication equipments, chemicals or any other article or thing notified by the Board”
(w.e.f. 12010).
189
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 1[a sum equal to 2[one and one-half times] of the
expenditure] so incurred.
3[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
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 expenditure so incurred.]
4[Explanation.—For the purposes of this clause, “expenditure on scientific research”, in relation to
drugs and pharmaceuticals, shall include expenditure incurred on clinical drug trial, obtaining approval
from any regulatory authority under any Central, State or Provincial Act and filing an application for a
patent under the Patents Act, 1970 (39 of 1970).]
(2) No deduction shall be allowed in respect of the expenditure mentioned in clause (1) under any
other provision of this Act.
(3) No company shall be entitled for deduction under clause (1) unless it enters into an agreement
with the prescribed authority for co-operation in such research and development facility and 5[fulfils such
conditions with regard to maintenance of accounts and audit thereof and furnishing of reports in such
manner as may be prescribed].
(4) The prescribed authority shall submit its report in relation to the approval of the said facility to
the 6[Principal Chief Commissioner or Chief Commissioner or] 7[Principal Director General or Director
General] in such form and within such time as may be prescribed.]
8* * * * *
9[(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.]
10[(2B) (a) 11[Where, before the 1st day of March, 1984, an assessee has incurred any expenditure]
(not being in the nature of capital expenditure incurred on the acquisition of any land or building or
construction of any building) on scientific research undertaken under a programme approved in this
1. Subs. by Act 10 of 2000, s. 16, for “a sum equal to one and one-fourth times of the expenditure” (w.e.f. 12001).
No deduction shall be allowed in respect of the expenditure mentioned in clause
under any
other provision of this Act.
No company shall be entitled for deduction under clause
unless it enters into an agreement
with the prescribed authority for co-operation in such research and development facility and 5[fulfils such
conditions with regard to maintenance of accounts and audit thereof and furnishing of reports in such
manner as may be prescribed].
The prescribed authority shall submit its report in relation to the approval of the said facility to
the 6[Principal Chief Commissioner or Chief Commissioner or] 7[Principal Director General or Director
General] in such form and within such time as may be prescribed.]
8* * * * *
9[
No deduction shall be allowed to a company approved under sub-clause
of clause
of
sub-section
in respect of the expenditure referred to in clause
which is incurred after the 31st day
of March, 2008.]
10[
(a) 11[Where, before the 1st day of March, 1984, an assessee has incurred any expenditure]
(not being in the nature of capital expenditure incurred on the acquisition of any land or building or
construction of any building) on scientific research undertaken under a programme approved in this
1. Subs. by Act 10 of 2000, s. 16, for “a sum equal to one and one-fourth times of the expenditure” (w.e.f. 12001).