Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: empanelment :: VAT Audit :: due date for vat payment :: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARD :: cpt :: ARTICLES ON INPUT TAX CREDIT IN VAT :: list of goods taxed at 4% :: ACCOUNTING STANDARDS :: form 3cd :: TDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT RATES :: Central Excise rule to resale the machines to a new company :: articles on VAT and GST in India
 
 
« Budget Extravaganza »
 Government should reinstate wealth tax in Budget 2017
 With demonetisation inducing tax compliance will PM Modi cut tax rates in Budget 2017?
 State plan budget utilisation in Odisha
 Maharashtra wants budget advanced to February
 Coastal economic zones may get 10-year tax exemption in next Budget
 Why advancing the Union Budget date may not make much difference
 Govt keen 2017-18 budget should not clash with polls: Arun Jaitley
 Finance Ministry seeks industry suggestions on taxation for Budget
 Budget should focus on fiscal firm up
 Finance ministry keen to present Budget on February 2 or earlier
 Poor railway performance may mar merged Budget

Union Budget 2009-'10: R&D tax benefit
July, 07th 2009

Budget 2010 has doled out a substantial tax break for research & development with the finance minister saying R&D spend in all manufacturing sectors, with the exception of a small negative list, will benefit from tax deduction. A weighted tax deduction of 150% if R&D spend is Rs 100, taxable income is reduced by Rs 150 is right now available to companies in a few sectors like pharma.

Sanjay Kapadia, executive director (direct tax) at PricewaterhouseCoopers said: Earlier, the weighted tax deduction was applicable to only a few sectors. It is a welcome step to open it to other sectors.

Weighted tax deduction benefits companies as it reduces their taxable income and tax liability. The FM has proposed to expand the benefit to all sectors except for those mentioned in the 11th schedule firms producing alcohol, tobacco, cosmetics, toiletries, dental care products and aerated drinks.

Naveen Aggarwal, ED (direct tax) at KPMG, commented: The proposal has a much wider coverage and is going to encourage innovation and entrepreneurs. It is going to benefit industries like software, which have captive R&D units in India but were not eligible for tax deduction. It is also going to give a push to the manufacturing sectors that are involved in developing new designs.

Said R Chandrasekaran, president and MD, global delivery, Cognizant: A substantially higher outlay should increase the R&D throughput and innovation quotient in a material way. The pharma industry is pleased that it has been extended. It had actually made a representation for the tax deduction to be increased to 200%. The fact that the FM has expanded the scope to include more sectors is a good thing, Mr Kapadia said.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - About Us

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions