Deduction in terms of Long Term Infrastructure Bonds

Deduction of Rs. 20,000 for subscription

to investment in long term infrastructure bonds 

which will be notified by Central Government.  

This deduction will be over and above existing limit 

of Rs. 100,000 under section 80C, 80CCC and 

80CCD. This will be effective from Assessment 

Year 2011-2012 onwards

Deduction for contribution to Central 

Government Health Scheme (CGHS) – 

 Contribution made to HS for serving and 

retired Government servants allowed as 

deduction under section 80D within the present

limits of Rs. 15,000 and Rs. 20,000 for senior citizens.

Enhancement of weighted deduction for in-house 

scientific research and development for 

corporate covered under section 35(2AB) – 

 The quantum of claiming a weighted deduction on

the expenditure incurred on in-house scientific 

research and development by corporate has been 

raised from 150% to 200% of such expenditure.

This will be effective from Assessment Year 2011-12 onwards

Enhancement and extension of weighted deduction 

for payment made for scientific or social or

statistical research.
The quantum of claiming a weighted

deduction on the payment made to

an approved research association 

or college or university or institutions 

engaged in scientific research or research

in social science or statistical research has 

been raised from 125% to 175% times of 

such payment. This will be effective from

Assessment Year 2010-11 onwards.

Exemption of income of approved association 

engaged in research of social or scientific research - 

The income of association engaged in engaged in research 

of social or statistical research are proposed to be made 

fully exempt from tax. Presently, only a scientific research 

association enjoys exemption. This will be effective from 

Assessment Year 2010-11 onwards

Investment linked Tax Incentive scheme to

hotel industry – 

A deduction of 100% of capital expenditure 

(excluding land, goodwill, and financial instrument)

has been proposed to incentivise hotel industry for 

building and operating a new hotel of two star or 

above category anywhere in India, which starts

functioning after April1, 2010. This will be effective

from Assessment Year 2011-12 onwards