Budget 2013: Weighted deduction to an approved R&D company be extended from 125% to 175%, says FICCI

NEW DELHI: Federation of Indian Chambers of Commerce and Industry ( FICCI) in its pre-budget memorandum wants the weighted deduction to an approved R&D company to be extended from 125% to 175% in the upcoming budget 2013.

Under Vide Finance Act 2010, the percentage of weighted deduction allowable u/s 35(2AA) on sponsored scientific research undertaken through an approved National Laboratory, University, Indian Institute of Technology and other specified institutions was increased from 125% to 200%.

However, similar increase in the percentage of weighted deduction on contributions made u/s 35(1) (iia) to an exclusive R&D company approved by the specified authority, has not been allowed.

"Percentage of weighted deduction on contributions made to an exclusive R&D company for carrying research and development should be increased from 125% to 175%," said FICCI.

The percentage of weighted deduction u/s 35(1)(ii) on contributions made to approved scientific research associations, University, College or other institutions was also increased from 125% to 175%.