Dept of Heavy Industry opposes reduction of R&D tax breaks

The automobile industry has joined arms with the pharma industry to oppose the CBDT’s proposal to cut the research and development (R&D) tax breaks.

CNBC-TV18 learns from sources that the Department of Heavy Industry is planning to write to the Finance Minster opposing this move, arguing that this will hurt the ‘Make in India’ campaign and wants the R&D exemption to stay for this sake.

Companies at present get a 200 percent deduction on the expenditure incurred on R&D which will be reduced to the actual expenditure incurred with effect from FY17.Watch video for more.