Under section 45(3)(a)(i) of the Income-tax Act, 2025, a sum paid by an individual carrying on…

Section 45(3)(a)(i) of the Income-tax Act, 2025 allows a deduction, in computing business income, for any sum paid to a research association having the object of undertaking scientific research, or to a university, college or institution to be used for scientific research. Under section 45(4)(b), the association must be approved and notified by the Central Government. The deduction equals the sum paid, i.e. 100%, and no weighted deduction is provided.

The weighted deductions of 175% and later 150% under s.35(1)(ii) of the 1961 Act were phased out, and the deduction was 100% from AY 2021-22. So 125%, 150% and 175% are not the current rate. The deduction is denied under the default new tax regime by section 202(2)(a)(ix), which is why the individual must have opted out.