eFiling Income Tax Online for Researchers

eFiling Income Tax Online for Researchers

Hey Researcher..! all your tax compliance's are here, just read on, no need  of any search.

A research may be carried on under various fields such as Scientific Research, Statistical Research, Social Research etc.

Research carried in the nature of scientific research attracts a special deduction under section 35 of income tax act 1961 wherein all other forms of research carried on by an individual do not attract this particular benefit under this section 35 of Income Tax 1961.

Expenditure other than relating to scientific research expenditure shall be allowed as a deduction in the normal course of operating the business, where as those expenses which are related to scientific research shall be allowed as a deduction in the following manner:

Assesse other than a company engaged in the in house Scientific research

In case of in house research expenditure deduction is allowed either 100% or 150%, the bifurcation is further explained in the below table.

A) Revenue Expenditure

All revenue expenditure incurred in the financial year related to scientific expenditure shall be deductable in that particular financial year.

Revenue expenses prior to Commencement of business

Any revenue expenditure relating to payment of salaries or on account of purchase of raw materials used in scientific research which was incurred 3 years immediately preceding the commencement of the business shall be allowed in the previous year in which business is commenced.

B) Capital expenditure relating to business.

Any capital expenditure incurred before the commencement of the business of scientific research within 3 years immediately preceeding the commencement of the business shall be allowed as a deduction in the previous year in which the business is commenced.

Note: No Deduction shall be allowed for the cost of purchase of land.

Assesse being a company engaged in the business of Bio Technology or manufacture if any article or thing.

 Where a company engaged in the business of bio-Technology or manufacture of any article or thing incurs any expenditure on in house research expenditure, 200% of the amount shall be allowed as a deduction on both revenue and capital expenditure.


i)No deduction shall be allowed on cost of land.

ii)Deduction of Building shall be allowed to the extent of 100% only


     Assesee is not engaged in the business of scientific research but assesse is contributing towards scientific research to outsiders, then the deduction shall be allowed as per the following.

S No

Contribution made to:

Deduction (As a percentage)


An Approved research association, approved university, college or other institution, to be used for scientific research

175% of the amount contributed.


An approved research association, approved university or other institution, to be used for social science of statistical research

125% of the actual expenditure.


A national laboratory, university, Indian Institute of technology or a specified person as approved, wherein the sum so contributed shall be utilised for the purpose of scientific research.

200% of the actual contribution made.


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