Section 35 → Section 36
Expenditure on scientific research
Quick Answer
Section 35 of the Income Tax Act, 1961 (Expenditure on scientific research) corresponds to Section 36 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective 1st April 2026. Status: Retained.
Sec 35
Provision Summary
Deductions for revenue and capital expenditure on scientific research related to business, and contributions to approved research institutions.
Sec 36
Provision Summary
Weighted deductions (e.g., 150%) have been entirely phased out. Deduction is now restricted to 100% of the actual expenditure.
Key Changes & Highlights
- Alignment with simplified tax regimes which do not support weighted artificial deductions.
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Frequently Asked Questions
What does Section 35 of the Income Tax Act 1961 deal with?
Section 35 (Expenditure on scientific research) Deductions for revenue and capital expenditure on scientific research related to business, and contributions to approved research institutions.
What is the new section number for Section 35 under the Direct Tax Code 2025?
Section 35 of the ITA 1961 maps to Section 36 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective from 1st April 2026.
What is the status of Section 35 under the new tax code?
Section 35 is marked as "Retained" with status "Modified". Impact: High - Impacts R&D budgets of pharma and tech companies.
What are the key changes to Section 35 under DTC 2025?
Alignment with simplified tax regimes which do not support weighted artificial deductions.
Disclaimer: This page is for educational and reference purposes only. Section mappings are based on publicly available drafts and circulars. Always consult a qualified Chartered Accountant before filing or making compliance decisions under the Direct Tax Code 2025.
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