Mr. X is engaged in paper business and commenced production of paper on 1 st December, 2018.
Question:
Mr. X is engaged in paper business and commenced production of paper on 1st December, 2018. He has incurred the following expenditure on scientific research.
Salary of research staff from 1st December 2015 to 30th November, 2018: Rs.60,000 (out of which Rs.20,000 certified by prescribed authority)
Purchase of research material from 1st December, 2015 to 30th November, 2018: Rs.30,000 (out of which Rs.25,000 certified by prescribed authority)
Rent paid for building is which research carried out from 01/12/15 to 30/11/18 Rs.36,000 & from 1st Dec 18 to 31st Jan 19: Rs.4,000
On 15th Feb, 19, the company purchases a plot of land for Rs. 6,00,000. Later on a Laboratory building is constructed (cost of construction: Rs.2,70,000 & Date of Completion 25th March 19) to do in house scientific research.
Compute deduction u/s 35 for A/Y 19-20.
Intermediate Accounting
ISBN: 978-0176509736
10th Canadian Edition, Volume 1
Authors: Donald Kieso, Jerry Weygandt, Terry Warfield, Nicola Young,