Globally, governments provide significant tax incentives to corporations for expenditure on research and development (R&D) to foster innovation. Studies have argued that India\u2019s tax regime has been more liberal and generous than most countries. In India, several R&D tax incentives are provided to firms registered under the Department of Scientific and Industrial Research (DSIR). Firms not registered under DSIR can also avail of the income tax deduction on R&D expenses, patent box regime (PBR), and tax holidays, if eligible. Recently, the Union Budget 2022-23, saw the withdrawal of a few customs duty exemptions for R&D. But India\u2019s gross expenditure on R& D is low, at 0.7% of GDP for 2019-20, which is less than half the spending of major economies of the world at 1.5% of their GDP. And business enterprises finance 41.3% of R&D, compared to a global standard of 50%.<\/p>\n
Hence, the question arises, how effective are the tax incentives in promoting R&D? Don\u2019t they deserve more scrutiny and maybe enhanced a bit?
\nPlease share your opinion with us.<\/p>\n","protected":false},"excerpt":{"rendered":"
Globally, governments provide significant tax incentives to corporations for expenditure on research and development (R&D) to foster innovation. Studies have…<\/p>\n","protected":false},"author":1,"featured_media":387,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[107,135,136,132,133,134],"class_list":["post-386","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance-and-economy","tag-indianchamberofcommerceblogs","tag-taxbusiness","tag-taxessimplified","tag-taxincentives","tag-taxinfo","tag-taxsavings"],"post_mailing_queue_ids":[],"_links":{"self":[{"href":"https:\/\/blogs.indianchamber.org\/index.php?rest_route=\/wp\/v2\/posts\/386","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blogs.indianchamber.org\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blogs.indianchamber.org\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blogs.indianchamber.org\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/blogs.indianchamber.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=386"}],"version-history":[{"count":0,"href":"https:\/\/blogs.indianchamber.org\/index.php?rest_route=\/wp\/v2\/posts\/386\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blogs.indianchamber.org\/index.php?rest_route=\/wp\/v2\/media\/387"}],"wp:attachment":[{"href":"https:\/\/blogs.indianchamber.org\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=386"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blogs.indianchamber.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=386"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blogs.indianchamber.org\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=386"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}