Section 35(1)(i) and 35(2AB) of Income Tax Act. Companies with in-house R&D facilities approved by DSIR can claim 100-150% weighted deduction on R&D expenditure. Direct cash equivalent via reduced tax liability.
Company with in-house R&D department approved by DSIR (Department of Scientific and Industrial Research). Documented R&D expenditure. Currently profitable or expecting future profitability.