Finance Act, 1968

Amendment of section 244 of Income Tax Act, 1967.

14.Section 244 of the Income Tax Act, 1967 , is hereby amended—

(a) by the insertion, after subsection (2), of the following subsection—

“(2A) Where, on or after the 6th day of April, 1968, a person carrying on a trade—

(a) incurs non-capital expenditure on scientific research or pays any sum to a body or university referred to in subsection (2) (b) in order that the body or university may undertake scientific research, and

(b) the expenditure so incurred or the sum so paid is not deductible as an expense under subsection (2) because the scientific research is not related to any trade being carried on by the person,

then, the expenditure so incurred or the sums so paid shall be deducted as an expense in computing the profits or gains of the person's trade.”,

and

(b) by the addition to subsection (3) of the following proviso—

“Provided that, where, on or after the 6th day of April, 1968, a person carrying on a trade incurs capital expenditure on scientific research which is not allowable as a deduction under the foregoing provisions of this subsection because the scientific research is not related to any trade being carried on by that person, there shall be allowed as a deduction in charging the profits or gains of that person's trade for the year of assessment in which the expenditure was incurred a sum equal to the amount of the expenditure.”.