Weighted deduction allowed on in-house research and development extended
In order to mobilize funds for in-house research and development, weighted deduction allowed under section 35 (2AB) has been extended to 31st march, 2017 which was previously limited to 31st march, 2012.
Expenditure (not being in the nature of cost of any land or building)incurred by companies on in-house research and development approved by prescribed authority is allowed as weighted deduction at the rate of 200 %. Previously, expenditure incurred after 31st March, 2012 was not allowed as deduction.
Thus, in order to promote companies to spend money on in-house R&D, with effect from 1st April, 2013, benefit of weighted deduction is extended for a further period of five years i.e. up to 31st March, 2017.