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200% deduction of sum paid to a national laboratory,university IIT,or specified person approved by prescribed authority with a specific direction that it shall be used for scuentific research under an approved research programme how it is calculated-it is just 200% of said sum expended for said purpose

Ans:- **Weighted deduction for contribution made for approved scientific research programme** Under the existing provisions of section 35(2AA) of the Income-tax Act, weighted deduction to the extent of 175 per cent is allowed for any sum paid to a National Laboratory or a university or an Indian Institute of Technology (IIT) or a specified person for the purpose of an approved scientific research programme. In order to encourage more contributions to such approved scientific research programmes, the weighted deduction is increased from 175 per cent to 200 per cent (b) Investment linked deduction in respect of specified businesses Under the existing provisions of section 35AD of the Income-tax Act, investment-linked tax incentive is provided by way of allowing hundred per cent deduction in respect of any expenditure of capital nature (other than on land, goodwill and financial instrument) incurred wholly and exclusively, for the purposes of the “specified business”. Two new businesses are included in “specified business”, under section 35AD(8)(c): (a) developing and building a housing project under a scheme for affordable housing framed by the Central Government or a State Government, as the case may be, and notified by the Board in this behalf in accordance with the guidelines as may be prescribed; and (b) production of fertiliser in India. Under section 73A, any loss of a “specified business” (under section 35AD) is allowed set-off against profit and gains of any other “specified business”. In order to remove any ambiguity in this regard in respect of the business of hotels and hospitals, the word “new” is removed from the definition of “specified business” in the case of hotels and hospitals under section 35AD(8)(c). With this, the loss of an assessee on account of a “specified business” claiming deduction under section 35AD will be allowed for set off against the profit of another “specified business” under section 73A, whether or not the latter is eligible for deduction under section 35AD. Therefore, an assessee who currently operates a hospital or a hotel would be able to set off the profits of such business against the losses, if any, of a new hospital or new hotel which begins to operate after 1st April, 2010 and which is eligible for deduction of expenditure under section 35AD.

According to Section 35 of the Income Tax Act, 1961 expenditure incurred on scientific research is eligible for weighted deduction. Weighted Deduction means deduction allowed more than expenditure incurred by applying the given percentages. It can be divided in 2 parts **Part A** - Inhouse research carried on within the business by the assessee for the business, Revenue expenditure allowed for the same and capital expenditure other than land is allowed. In case of research during the course of business weighteed deduction of 200% of amount spent is allowed if assessee is engaged in Manufacturing business or business of biotechnology subject to fulfillment of certain conditions. **Part B** Contribution to outsiders Assessee gives donation to outsiders for such research 1. Contribution for scientific research to a. National Laboratory and IIT - Deduction 200% b. Approved Research Association, University, College, Institute - 175% deduction c. Indian Company engaged in Research - 125% Deduction 2. Contribution for social science & statistical research to approved Research Association, University, College, Institute is eligible for 125% deduction.