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Section 35(2AB) weighted deduction for in-house R&D currently is:
A175%
B150%
C200%
D100% of actual expenditure
Answer & Solution
Correct answer: D. 100% of actual expenditure
1. Section 35(2AB) earlier provided 200% weighted deduction for in-house R&D by approved company.
2. Reduced progressively; from AY 2021-22 onwards: 100% of actual expenditure.
3. Capital expenditure on R&D (other than land) is fully deductible under Section 35(1)(iv).
_Source: ICAI BoS CA Final Paper 7, Ch 3 "Profits and Gains of Business or Profession"_
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