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Business Tax planning
Tips:
Issue 1
Are you an enterprenuer? Here, we have given a tax planning
tip for
you.
Expenditure on Scientific
Research Eligible for Deduction:
Do you
think, that doing any Scientific Research will help to lead/facilitate
an extension of your business?
You can
claim deduction for contributing/facilitating any such scientific
research.
Contributions
for Research Expenditure:
What contributions are eligible for deduction?
a. Contribution to -
- Scientific Research association,
- College, University or other institutions
notified by Central Government,
for scientific, social and statistical research.
b. Contribution to -
- Laboratory
- University
- Indian Insitute of Technology
specifically for scientific research programme
approved by the prescribed
authority.
c. Contribution to -
- a Company registered in India and approved by
prescribed authority to carry out scientific research.
are eligible for deduction.
Quantum of
Deduction: -
125% of the
contribution. Which means, if you incur Rs.100 you would
be eligible for Rs.125 deduction from your income.
Research
Expenditure in relation to own business:
The expenditure
incurred in relation to the assessee's own business is eligible for
100%
deduction.
Conclusion
-
If you plan to extend your business, research
the potential market for growth opportunities. or,
-
If you have new Plan/Idea/Product for
extention of your business, then form a team and research it. Then
implement it.
-
You can claim deduction for any such research
expenditure.
-
Based on the Research results, you can extend
your business further - Huge benefit for your business.
So, plan your donations or contributions, if you are business assessee.
You
would be eligible for additional deductions than the actual expenditure.
How
can we help you for your Business success?
V.Krishnan
& Co., provide wide range of Services
for Companies/Corporate entities. For further details Contact Us.
Next
Business tax planning tip - Family Planning Expenditure in
the hands of Companies.
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