Income Tax Act, 2025
Section 2: Ins. by Act 18 of 1992, s. 13 (w.e.f. 11992).
2. Ins. by Act 18 of 1992, s. 13 (w.e.f. 11992).
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1[35. Expenditure on scientific research.—(1) In respect of expenditure on scientific research, the
following deductions shall be allowed—
(i) any expenditure (not being in the nature of capital expenditure) laid out or expended on
scientific research related to the business.
2[Explanation.—Where any such expenditure has been laid out or expended before the
commencement of the business (not being expenditure laid out or expended before the 1st day of
April, 1973) on payment of any salary [as defined in Explanation 2 below sub-section (5) of
section 40A] to an employee engaged in such scientific research or on the purchase of materials used
in such scientific research, the aggregate of the expenditure so laid out or expended within the three
years immediately preceding the commencement of the business shall, to the extent it is certified by
the prescribed authorityto have been laid out or expended on such scientific research, be deemed to
have been laid out or expended in the previous year in which the business is commenced;]
(ii) 3[an amount equal to 4[one and one half] times of any sum paid] to a 5[research association]
which has as its object the undertaking of scientific research or to a university, college or other
institution to be used for scientific research:
6[Provided that such association, university, college or other institution for the purposes of this
clause—
(A) is for the time being approved, in accordance with the guidelines, in the manner and
subject to such conditions as may be prescribed; and
(B) such association, university, college or other institution is specified as such, by
notification in the Official Gazette, by the Central Government;]
7[Provided further that where any sum is paid to such association, university, college or
other institution 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 sum so paid;]
8[(iia) 9*** 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;]
1. Restored by Act 3 of 1989, s. 95 (w.e.f. 11989). Earlier omitted by Act 4 of 1988, s. 10 (w.e.f. 11989).
In respect of expenditure on scientific research, the
following deductions shall be allowed—
any expenditure (not being in the nature of capital expenditure) laid out or expended on
scientific research related to the business.
2[Explanation.—Where any such expenditure has been laid out or expended before the
commencement of the business (not being expenditure laid out or expended before the 1st day of
April, 1973) on payment of any salary [as defined in Explanation 2 below sub-section
of
section 40A] to an employee engaged in such scientific research or on the purchase of materials used
in such scientific research, the aggregate of the expenditure so laid out or expended within the three
years immediately preceding the commencement of the business shall, to the extent it is certified by
the prescribed authorityto have been laid out or expended on such scientific research, be deemed to
have been laid out or expended in the previous year in which the business is commenced;]
3[an amount equal to 4[one and one half] times of any sum paid] to a 5[research association]
which has as its object the undertaking of scientific research or to a university, college or other
institution to be used for scientific research:
6[Provided that such association, university, college or other institution for the purposes of this
clause—
is for the time being approved, in accordance with the guidelines, in the manner and
subject to such conditions as may be prescribed; and
such association, university, college or other institution is specified as such, by
notification in the Official Gazette, by the Central Government;]
7[Provided further that where any sum is paid to such association, university, college or
other institution 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 sum so paid;]
8[
9*** any sum paid to a company to be used by it for scientific research:
Provided that such company—
is registered in India,
has as its main object the scientific research and development,
is, for the purposes of this clause, for the time being approved by the prescribed authority
in the prescribed manner, and
fulfils such other conditions as may be prescribed;]
1. Restored by Act 3 of 1989, s. 95 (w.e.f. 11989). Earlier omitted by Act 4 of 1988, s. 10 (w.e.f. 11989).