Firms have to furnish R & D certificate for deductions
Seeking to check diversion of funds in the name
of in-house R&D, the Revenue Department has said companies will have to
produce a certificate from an accountant for claiming tax deductions on such
expenditures. The provision will have a bearing for bio-technology companies
and also those which rely heavily on in-house research & development
(R&D). Finance Minister in his Budget 2016-17 has tightened the norms for
claiming deductions by reducing the weighted deduction available for in-house
R&D from 200 per cent to 150 per cent. The expenditure incurred will also
have to be ratified by the Secretary in the Department of Scientific and
Industrial Research.
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