The General Budget 2008-09 has proposed to add the business of production of seeds and manufacture of agricultural implements to the list of exempt category on in-house scientific research. They will be allowed a weighted deduction of 150 per cent on any expenditure on in-house research as available hitherto to companies engaged in certain businesses.
In order to promote outsourcing of research, a weighted deduction of 125 % has been allowed on any payment made to companies engaged in R & D.
Income rising from saplings or seedlings grown in a nursery has been exempted from tax on the lines of agricultural income.
Union Budget