Type of Institutions

Incentives

Notifications/Acts/Orders

Approval & Application Forms  

Industries having in-house R & D Centers

i.       Write off of revenue expenditure

ii.      Write off of capital expenditure

Duty free import of Pharmaceutical reference standards.

Duty free import of analytical & specialty equipment List 28 for R & D.

Duty free import of analytical & specialty equipment List 28 for production.

Section 35(1) (i) of Income Tax Act

Section 35(1) (iv) of Income Tax Act

Notification No. 26/2003-Customs dated 1^st March 2003 (item at serial no. 138)

Notification No. 26/2003-Customs dated 1^st March, 2003 {item at serial no. 248 (1)}

Notification No. 26/2003-Customs dated 1^st March, 2003 {item at serial no. 248 (2)}

No approval required. Cases referred to the prescribe authority (DGIT (E) Calcutta in concurrence with Secretary DSIR) through CBDT, in case of dispute with assessing officer.

 In-house R & D centres should be approved by DSIR.

 Click for Form ( Recognition ,

Renewal of recognition)

In-house R & D centres should be approved by DSIR.

 Click for Form ( Recognition ,

Renewal of recognition, yearly return )

In-house R & D centres should be approved by DSIR.

 Click for Form ( Recognition ,

Renewal of recognition, yearly return )

Industry / Private Sponsored research programmes

Weighted tax deduction of 125%

iii.     

Section 35(2AA) of the Income Tax Act.

The Head of the concerned National Laboratory or the University or the Indian Institute of Technology.

Companies engaged in business/manufacture/production in following areas -

Bio-technology

Drugs & Pharmaceuticals

Electronic equipment

Computers

Telecommunication equipment

Chemicals

Aircraft's and helicopters  

Automobiles including Automobile Components

Weighted tax deduction of 150 %

Section 35(2AB) of the Income Tax Act)

Click for Guidelines & Form

Commercial R & D Companies

Ten years tax holiday for companies approved by DSIR before 1^st April 2004.
Extended from April 1, 2004 to March 31, 2005

Section 80-IB(8A) of Income Tax act

Click for guidelines & application forms

 Investments on plant & machinery based on indigenous technology

 Accelerated depreciation allowance  @  40 %

Rule 5(2) of Income Tax Rules.

Click for guidelines & forms

Public funded R & D institutions

Duty free import of equipment and consumables.

Excise duty exemption on equipment and consumables.

Notification No.51/96 –Customs dated 23^rd July 1996.

Notification No. 10/97- Central  Excise dated 1^st March 1997.

Click for Form (registration,

Renewal of registration)

Click for Form.

Scientific Research Associations with object of undertaking scientific research or university, college or other institutions.

University, college or other institutions carrying out research in social sciences or statistical research.

Income tax exemption of 125% to donations.

Income tax exemption of 125% to donations

Section 35(1) (ii) of Income Tax Act

Section  35 (1) (iii) of the Income Tax Act.

 Prescribed authority is Central Government.

Prescribed authority is Central Government.

SIROs recognized by DSIR

 Duty free import of equipment and consumables.

Excise duty exemption on equipment and consumables.

Notification No.51/96 –Customs dated 23^rd July 1996.

Notification No. 10/97- Central  Excise dated 1^st March 1997

Click for Form.

Click for Form.

Any wholly owned Indian company 

Excise duty exemption for 3 years on goods designed and developed and patented in any two countries out of: India , USA , Japan and any one country of European Union

Notification No. 15/96 –CE dated July 23, 1996 , amended vide Notification No. 13/99- CE dated February 28, 1999.

Any Indian company

Exemption from price control of DPCO

Revenue expenditure on R & D laid out within three years immediately preceding the commencement of business

Drugs (Prices Control) Order 1995

Section 35 (1) (i) of Income Tax Act

Click for Form.

Prescribed authority is DGIT (E) Calcutta in concurrence with Secretary DSIR

R & D projects funded by Government of India.

Exemption from Custom duty on imports.

Notification No. 50/96-Customs dated 23 July 1996