Mr. Rao finished the following information regarding the payments made towards Scientific Research during the financial year 2023-24: (i) Revenue…

Computation of deduction allowable u/s 35 for the A.Y. 2024-25 Particulars ₹ (i) Revenue expenditure on scientific research allowable as deduction u/s 35(1)(i), assuming such expenditure is related to his business. 1,00,000 (ii) Capital expenditure allowable as deduction u/s 35(1)(iv), assuming such expenditure is incurred for his business. 3,00,000 (iii) Contribution to notified approved research association for scientific research – 100% of the amount paid is allowed as deduction u/s 35(1)(ii). 1,50,000 (iv) Amount paid to H Ltd., an Indian company approved by the prescribed authority - 100% of the amount paid is allowed as deduction u/s 35(1)(iia) 2,50,000 (v) Expenditure towards purchase of land – not allowed as deduction Nil (vi) Revenue expenditure towards salary of research staff incurred in the F.Y. 2022-23 (before commencement of business) – allowed as deduction u/s 35(1)(i) in the P.Y. 2023-24 as it was expended within the 3 years immediately preceding the commencement of business (assuming business is commenced during the P.Y. 2023-24). Note - Since the date of commencement of business is not given, an alternative view is possible that the business is commenced during the F.Y. 2022-23 itself. In that case, deduction for revenue expenditure incurred towards salary of research staff in F.Y. 2022-23 before commencement of business would have been allowed in the F.Y. 2022-23 and accordingly, no deduction would be available in F.Y. 2023-24. 2,00,000 Total deduction allowable 10,00,000