Introduction

Department of Scientific & Industrial Research (DSIR) is the nodal department for granting recognition to in-house R&D units in Industry, Scientific and Industrial Research Organizations (SIROs); and registration to Public funded research Institutions, universities, IIT's, IISc, Regional Engineering College (RECs), other than hospitals.

Secretary, DSIR is the prescribed authority vide Gazette notification No.S.O.85 (E) dated 31st January, 2001 issued by Department of Revenue, Ministry of Finance for granting approval to commercial R&D companies Under Section 80IB (8A) of I.T. Act, 1961; also approval to in-house R&D Centres under Section 35(2AB) of I.T Act 1961 for Weighted Tax Deduction.

In-house R&D units recognized by DSIR in the area of pharmaceutical and bio-technology sector are eligible for duty free import of specified goods (comprising of analytical and specialty equipment as per list 28) for R&D as per notification No. 26/2003-customs dated 1st March, 2003 (item at Sl. No. 248(1); and duty free import of specified goods (comprising of analytical and specialty equipment as per list 28) for production as per notification No.26/2003-customs dated 1st March, 2003 (item at serial No.248(2); and duty free import of pharmaceutical reference standards as per notification No.26/2003-Customs dated 1st March, 2003 (item at serial No.138); and also the in-house R&D units engaged in the research and development in the area of chemical, drugs pharmaceuticals, (including clinical trials), bio-technology, electronic equipments, computers, telecommunication equipments, aircrafts and helicopters are eligible for weighted tax deduction of a sum of equal to one and one-half times of any expenditure incurred on scientific research (not being expenditure in the nature of cost of any land building) as approved by the prescribed authority i.e. Secretary, DSIR. In case of dispute, Secretary, DSIR is also prescribed authority in concurrence with Director General of Income-Tax (Exemption) for deciding cases of R&D expenditure made on Capital Equipment and related R&D activities under Section 35 of Income-Tax Act, 1961 referred by Central Board of Direct Taxes.

A few more incentives introduced by the Government to encourage R&D by industry include write off of revenue and capital expenditure on R&D, weighted tax deduction on sponsored research programmes of industry with National Laboratories/Universities /IITs; accelerated depreciation allowance on plant and machinery set up indigenous technology, custom duty exemption on goods imported for use in Government funded R&D projects, excise duty waiver for 3 years on goods produced based on indigenous technologies and duly patented in any two of the countries out of India, European Union(One Country), USA and Japan.

Scientific & Industrial Research Organizations in the area of Medical Agriculture, Natural and Applied Sciences and Social Sciences recognized by DSIR are eligible for notification under Section 35 (1) (ii)(iii) of I.T Act 1961 and also for availing Custom and Excise duty exemption.

Commercial R&D companies approved by DSIR before 1st April, 2004 are eligible for 10 years tax holidays.

Fiscal Incentives

Guidelines for Approval in Form 3CM of In-house R&D Centres recognised by DSIR and Submission of Report in Form 3CL Under Section 35(2AB) of IT Act 1961 [22 MAY 14]

Application Form and Guidlines for 3 year Excise Duty exemption  on Patented Goods [17 APR 14]

Key Features of Union Budget 2012-2013 Relevant to Research and Development [08 JUN 12]

Key Features of Union Budget 2010-2011 Relevant to Research and Development [12 MAR 10]

Click Here for details of Fiscal Incentives

PROCEDURE AND REVISED GUIDELINES FOR APPROVAL OF IN-HOUSE R&D CENTRES AND REPORTING OF EXPENDITURE UNDER SECTION 35(2AB) OF IT ACT 1961  PDF [16 JUN 10]

• The revised guidelines contain specific guidelines for Seed Industries.
• Updated Text of section 35(2AB) of IT Act.
• The Eleventh Schedule of IT Act.
• Annexure-IV and V of the earlier guidelines (May, 2009) have been restructured and combined in the revised guidelines and is appearing as Annexure- IV to facilitate submissions for report in Form 3CL.

Directories

• Directory of Public Funded Research Institutions, 2014 [13 JUL 15]
• Directory of Recognized In-House R&D Units, 2014  [07 JUL 15]
• Directory of Recognized Scientific & Industrial Research Organizations, 2014  [07 JUL 15]

Click Here for Past Years Directories

National R&D Awards

• Click Here for List of National R&D Award Winners 2008 [22 JAN 09]

Click Here for Past Years National R&D Awards

Archives

• R&D in Industry Update - Quarterly Newsletter [17 JAN 08]
• Research and Development in Industry - An Overview, November 2007  [17 JAN 08]

Click here for Archives of IRDPP

For additional information, Contact:

Shri K V S P Rao
Scientist 'G' and Head (RDI)
Department of Scientific & Industrial Research
Technology Bhawan, New Mehrauli Road
New Delhi-110016

Phone: (011) 26863805, 26590446
TeleFax: (011) 26960629
E-mail: rdi[at]nic[dot]in

On this website in all email addresses [at] = @ and [dot] = .

Last Updated: 11/08/2015