In a major boost to industry specific scientific research, the Budget announces 125 per cent weighted income tax deduction on expenses incurred in outsourcing research projects from government recognised research institutions. The move aims at encouraging private-public partnerships in research.
The new clause will come into force from assessment year 2009-10. However, the companies that are enjoying 150 per cent weighted tax deduction on expenses for their in-house research and development programmes will not be eligible for the new scheme.
The government has also increased the budgetary allocation for science and technology, scientific and industrial research, and biotechnology sectors by Rs 269 crore, Rs 180 crore and Rs 216 crore respectively from 2007-08.
A scheme called Innovation in Science Pursuit for Inspired Research (INSPIRE) that will give scholarships to young learners (10-17 years), scholarships for continuing science education (17-22 years) and opportunities for research careers (22-32 years) has been announced.
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