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Income Tax Ordinance, 2001
CHAPTER-III TAX ON TAXABLE INCOME PART IV HEAD OF INCOME: INCOME FROM BUSINESS Division III Deductions: Special Provisions
From: 2023-07-01 - To: 0000-00-00 26. Scientific research expenditure.- (1) A person shall be allowed a deduction for scientific research expenditure incurred in Pakistan in a tax year wholly and exclusively for the purpose of deriving income from business chargeable to tax. (2) In this section- “scientific research” means any 1[activity] 2[undertaken in Pakistan] in the fields of natural or applied science for the development of human knowledge; “scientific research expenditure” means any expenditure incurred by a person on scientific research 3[undertaken in Pakistan] for the purposes of developing the person’s business, including any contribution to a scientific research institution to undertake scientific research for the purposes of the person’s business, other than expenditure incurred - (a) in the acquisition of any depreciable asset or intangible; (b) in the acquisition of immovable property; or (c) for the purpose of ascertaining the existence, location, extent or quality of a natural deposit; and “scientific research institution” means any institution certified by the 4[Board] as conducting scientific research in Pakistan. _________________________________________________________ 1-Substituted for the word “activities” vide the Finance Ordinance, 2002 (XXVII of 2002 promulgated on 15th June, 2002) 2-Inserted vide the Finance Act, 2003 (I of 2003 assented on 16th June, 2003) 3-Inserted vide the Finance Act, 2003 (I of 2003 assented on 16th June, 2003) 4-The words “Central Board of Revenue” substituted vide the Finance Act, 2007 (IV of 2007 assented on 30th June, 2007) From: 2007-07-01 - To: 2023-06-30 26. Scientific research expenditure.- (1) A person shall be allowed a deduction for scientific research expenditure incurred in Pakistan in a tax year wholly and exclusively for the purpose of deriving income from business chargeable to tax. (2) In this section- “scientific research” means any 1[activity] 2[undertaken in Pakistan] in the fields of natural or applied science for the development of human knowledge; “scientific research expenditure” means any expenditure incurred by a person on scientific research 3[undertaken in Pakistan] for the purposes…
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