Union finance minister Pranab Mukherjee has proposed providing weighted deduction for expenditure in several sectors in a bid to boost investments.
To promote investment in research and development (R&D), Mukherjee said that it has been proposed to extend the weighted deduction of 200 per cent for R&D expenditure in an in-house facility beyond 31 March, 2012 for a further period of five years.
It has also been proposed to provide weighted deduction of 150 per cent on expenditure incurred for agri-extension services in order to facilitate growth in the agriculture sector.
For the power sector, besides measures for accessing low cost funds, Mukherjee has proposed extension of the sunset date by one year for power sector undertakings so that they can be set up on or before 31 March, 2013 for claiming 100 per cent deduction of profits for 10 years.
Additional depreciation of 20 per cent in the initial year is proposed to be extended to new assets acquired by power generation companies.