GK
TAXES IN INDIA
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Certain revenue and capital expenditure on scientific research are allowed as deduction in the previous year of commencement of business even if these are incurred:
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Any time prior to the commencement of the business
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3 years immediately before the commencement of the business
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5 years immediately before the commencement of business
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10 years immediately before the commencement of business
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Explanation:
Detailed explanation-1: -If an assessee incurs any expenditure on Scientific Research inside its premises or for development of Scientific Facility for development of its own business then deduction of expenditure is allowed as revenue expenditure.
Detailed explanation-2: -Donations made under Section 80GGA are eligible for 100% tax deduction. There is no upper limit to the amount one can donate to institutes which adhere to principles under this Section and the donations can be in the form of cash, cheque or drafts.
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