1.

Weighted Tax Deduction for R&D expenditure under section 35(2 AB) of Income Tax Act :

The benefit given in 2004-05 should be extended to the entire year.

The benefit of this deduction to the Auto Sector has been restricted only to the expenditure incurred on or after 21st September 2004, since the notification to this effect was issued only on 21st September 2004. SIAM requests the Government to allow the industry to avail the R&D benefit under Section 35(2AB) for the full financial year (2004-05) and not restrict it for half year.

2.

Weighted Tax Deduction for R&D expenditure under section 35(2 AB) of Income Tax Act :

The benefit should be extended to Research & Development expenditure incurred externally also.

SIAM welcomes the Government move to extend benefit of this scheme for a period of five years for Research & Development expenditure incurred on approved in-house research & development facility.

This should be extended to all Research & Development expenditure whether incurred in-house or externally.