Section 35 (2ab) - r&d expenses

Vijay (Finance Professional) (28 Points)

16 January 2015  

Dear Sir/Ma'am,

 

I have a query w.r.t. deduction allowed u/s 35 (2AB). It says that 200% is allowed, but my query is, does that mean 200% below the PBT or 100% below PBT.

 

My understanding is that all expenses are deducted before PBT and after PBT 200% of R&D expenses will be allowed. but the 2nd interpretation can be 100% (actual expense before PBT) and 100% after PBT, i.e., total 200%.

 

Please give clarification.

 

thank you.

 

Vijay.