As we all are cognizant to the fact that Income Tax benefits u/s 35 (2AB) relating to DSIR ratified companies receiving Form 3CM with tax deduction of 150% is slated to be reduced to 100% by end of FY 2019-20 i.e. 31st March 2020 which has got the entire manufacturing and research based companies shocked at this move.
We speak about Make in India but it must be noted that there is no financial motivation to Design & Development in India. SCPL has been trying to get the top executives of the Industry & Research field including global partners to reach out to the Government in order to make them understand the absolute loss of growth, loss of highly skilled professionals and innovation in this country if we decide to go down this path.
The Founder of SCPL, the parent company of DSIR.in met the Principal Scientific Advisor (PSA), Prof. Vijay Raghavan to Govt. of India in last week of August 2019 and the entire view of the industry and global practices about the R&D incentives was submitted to his office.
He was optimistic and revealed that the Government is in fact working with the Finance Ministry to try and restore the R&D incentives provided to Industry.
So we can deduce the fact that still there is hope and not all is lost for R&D in this country.