What is section 35 of Income Tax Act?

How much deduction is allowed for the payment made to National Laboratory?

100% of payment made to a National Laboratory or University or an Indian Institute of Technology or a specified person is allowed as deduction (Subject to certain conditions).

What would be the criteria for allowing deduction u/s 35 for expenses incurred on scientific research related to assessee’s own business?

A. REVENUE EXPENDITURE INCURRED BY AN ASSESSEE ON ITS OWN HOUSE SCIENTIFIC EXPENDITURE [SECTION 35(1)(I)]; … Amount Allowed as deduction: whole amount (100%) expended on Scientific Research during previous financial year shall be allowed as revenue expenditure.

What is weighted deduction?

Under the existing provisions of Section 35(2AB) of the Income-tax Act, a company is allowed weighted deduction at the rate of 200% of expenditure (not being in the nature of cost of any land or building) incurred on approved in-house research and development facilities.

Which donation is eligible for 100% deduction?

Donations Permitted under Section 80G

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Sr. No. Name Of The Charity % that qualifies for a Tax Deduction
1 Welfare Fund of Armed Forces (Army/ Naval/ Air Force) 100%
2 Chief Minister’s Relief Fund (LG’s) of any State (Union Territory) 100%
3 National Illness Assistance Fund 100%

Who can claim deduction under section 35?

1. The deduction is available only to a company. 2. The company should be engaged in the business of bio-technology or manufacture/ production of any article/ thing (other than listed on Eleventh Schedule).

What are fully exempted allowances?

Certain categories of taxes are fully exempted such as allowances given to judges at the Supreme Court and the High Courts. Allowances such as house rent allowance are partially exempted as per Section 10(13A). Other allowances such as city compensatory allowance are fully taxable.

Which following one is not allowed to deduct from NAV?

Self-occupied house property does not require standard deduction because there is no NAV for a self-occupied house. In simple terms, the standard deduction for a let out house or for a deemed let outhouse is 30% of Net Annual Value. On the other hand, there is no deduction for a self-occupied house.

Which income is exempt from tax under section 10?

Income Exempt From Tax As Per Section 10

Section 10(1) Income earned through agricultural means
Section 10(13) Any payment received through a Superannuation Fund
Section 10(13A) House Rent Allowance
Section 10(14) Allowances utilised to meet business expenses
Section 10(15) Income received in the form of interest

On which assets depreciation is allowed?

Depreciation Allowed

Sl.No Asset Class Rate of Depreciation
2 Building 10%
3 Building 40%
4 Furniture 10%
5 Plant and machinery 15%
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What is section 32 of Income Tax Act?

As per section 32 of Income Tax Act, 1961, a assessee is entitled to claim depreciation on fixed assets only if the following conditions are satisfied: 1. Assessee must be owner of the asset – registered owner need not be necessary.

Is charged to tax under profits and gains from business?

Income earned through your profession or business is charged under the head ‘profits and gains of business or profession. ‘ The income chargeable to tax is the difference between the credits received on running the business and expenses incurred.