Expenditure on attainment of patent rights or copyrights

Subject to and in accordance with the requirements of this section, an exemption equal to the appropriate fraction of the amount of such expenditure shall be permitted for each of the relevant prior years with respect to any capital investment made after the 28th day of February, 1966, on the acquirement of patent rights or copyrights used for the company's purposes. The wait is over for section 80g.

"Relevant prior years" refers to the fourteen years starting with the year in which the expenditure is made, or, if the expenditure was made prior to the start of the business, the fourteen years starting with the year the firm was established. Registration under section 12a is beneficial for NGOs.

Whenever the rights began, or were effective, in a year that preceded the preceding year in which the assessee paid expenses to acquire them, this clause will take effect once a reference to fourteen years is replaced with a regard to fourteen years less the number of comprehensive years that have passed since the beginning of the clause when the assessee acquires the rights, and if fourteen years have passed as stated above, a reference to one year. The phrase "suitable fraction" refers to the fraction whose numerator is one and whose denominator is the total number of pertinent prior years.

No deduction under the aforementioned sub-section shall be allowed in relation to the prior year in which the rights come to an end or, as the case may be, in relation to any subsequent prior year, where the rights come to an end without even being successively revived or where the entire or any part of the rights is sold and the proceeds from the sale are not less than the acquisition cost thereof remaining unallowed.

When the rights expire without being later renewed or are sold in full, and the sale proceeds (insofar as they comprise capital sums) are less than the acquisition price thereof that is still unallowable, a deduction equal to that cost remaining unallowable, or, as the case may be, that cost remaining unallowable as reduced by the sale proceeds, shall be allowed in respect of the prior year in which the rights expire, or, sold.

When all or a portion of the rights are sold and the proceeds of the sale exceed the cost of acquisition that is still unreimbursed, the portion of the excess that does not exceed the cost of acquisition of the privileges and the amount of that cost that is still unreimbursed shall be taxed as income of the business for the prior year in which all or a portion of the rights were sold.

You should have a view at the url of 12a registration.