Double Tax Deduction
Key Takeaways
DTD is a Special Deduction for Cash Contribution for Research Grants to an approved research institute [Income Tax Act (1967)].
Criteria for Double Tax Deduction
- Companies, including those in the service sector, are eligible for the double deduction incentive on expenses incurred for undertaking research and development (R&D) activities
- R&D means any systematic or intensive study undertaken in the field of science or technology with the objective of using the results of the study for the production or improvement of materials, devices, products, produce or processes
- Excluding:
- quality control of products or routine testing of materials, devices, products or produce
- research in the social sciences in humanities
- routine data collection
- efficiency surveys or management studies
- market research or sales promotion
- periodical or routine modification of materials, tools, products or methods of production
- cosmetic modification or stylistic modification of materials, tools, product or methods of production
Kindly refer to the Income Tax Act 1957 Section 34(B)
