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This Section Covers following types of Research

  1. Scientific Research
  2. Social Science Research
  3. Statistical Research

 

Such research may be conducted  

1.By Donation to Outside Body

 or

2. In-house Research (By Assessee himself)

 

 Lets study donation to Outside body first

Weighted Average Deduction on Donation to Outside Body    

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AMENDMENT

 

* Prescribed Authority is Secretary, Department of Scientific and Industrial Research (DSIR).

 

 

Procedure to be followed for Approval

Before granting approval,The prescribed authority(Secretary,DSIR)  shall

check feasibility of scientific research

and

submit its report in relation to the approval of the said facility to the 

 Principal Chief Commissioner 

or Chief Commissioner 

 or  Principal Director General

or Director General 

in such form and within such time as may be prescribed.

 

Procedure After Approval

Separate books of accounts to be maintained of this R&D Facility and audit report shall be submitted to prescribed authority(Secretary,DSIR)

 

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Q1

Particulars Amt
Gross Receipts 250000
Less  
Expenses 160000
PROFIT 90000

 

Suppose Expenses Include Following Donations

Particulars Amt
Donation for  Scientific Research to IIT 10000
Donation for  Scientific Research to Delhi University 20000
Donation for  Social  Research to Delhi University 30000
Total 60000

-a-

Computation of PGBP Income  
Profit as per P& L A/c 90000
Add  
Expense Disallowed  
Donation for  Scientific Research to IIT 10000
Donation for  Scientific Research to Delhi University 20000
Donation for  Social  Research to Delhi University 30000
  60000
l ess  
Expense Allowed  
Donation for  Scientific Research to IIT (10000*200%) 20000
Donation for  Scientific Research to Delhi University(20000*175%) 35000
Donation for  Social  Research to Delhi University(30000*125%) 37500
  92500
   
PGBP INCOME 57500

 

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About the Author

CA Maninder Singh's photo - Expert in Practical Accounts, Taxation and Efiling
CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 6 years. He provides courses for Practical Accounts, Taxation and Efiling at teachoo.com .
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