Form 11 Income Tax Rules 2026 pdf download and Key points
FORM NO. 11
[See rule 29(2)(c)]
Application for entering into an agreement with the Department of Scientific and Industrial research for cooperation in In-house research development facility
Under the Income-tax Rules, 2026, Form No. 11 replaces the erstwhile Form 3CK. It is governed by Section 45(2) of the Income-tax Act, 2025, and Rule 29 of the Income-tax Rules, 2026.
Here are all the key points regarding Form No. 11:
1. Purpose of the Form Form 11 is the statutory application framework used by a company to seek official approval for an in-house research and development (R&D) facility. Its primary purposes are to:
- Enable a company to seek approval for its in-house R&D facility.
- Formalise cooperation and enter into an agreement with the Department of Scientific and Industrial Research (DSIR).
- Ensure proper maintenance and audit of R&D accounts.
- Establish the statutory eligibility for the company to claim tax deductions on in-house R&D expenditure under Section 45(2) of the Act.
2. Applicability (Who Should File) The form must be filed by a company that maintains or proposes to maintain an in-house R&D facility and is engaged in:
- Biotechnology, or
- The manufacture or production of an eligible article or thing (other than those specified in the Thirteenth Schedule).
3. Role of the DSIR The DSIR acts as the prescribed authority in this framework. It evaluates the Form 11 application, conducts necessary inspections, issues the formal approval order, monitors ongoing compliance, and has the power to withdraw the approval if the company violates the conditions.
4. Structure and Key Information Captured The application requires comprehensive disclosures, including:
- Particulars of the company and its business.
- Details of production and R&D expenditure for the past three tax years.
- Details of existing in-house R&D facilities and any prior DSIR recognition.
- Proposed objectives of the scientific research.
- Formal undertakings relating to the maintenance of accounts, audits, and compliance.
- Annexures detailing facility-wise expenditure and progress.
5. Post-Approval Obligations & Annual Filings Filing and receiving approval for Form 11 does not automatically guarantee a tax deduction; it is merely a pre-condition. Once approved, the company has strict, ongoing compliance obligations:
- Maintain separate, audited accounts specifically for R&D expenditure.
- Attach these audited R&D accounts with the annual return of income.
- Ensure that the assets of the facility are used exclusively for approved purposes.
- Submit annual progress reports (Parts A and B of Form 11) to the DSIR.
- Furnish annual information in Annexure I and Annexure II.
6. Distinction from Sponsored Research (Forms 7 to 10) It is important to note that Form 11 is exclusively for in-house R&D facilities under Section 45(2). It is entirely distinct from the regime involving Forms 7 to 10, which apply to sponsored scientific research programmes executed by external institutions (like Universities or IITs) under Section 45(3)(c).
7. Consequences of Non-Compliance Failure to comply with the conditions of Section 45(2), Rule 29, or the specific terms of the agreement will result in the withdrawal of the DSIR approval and the subsequent denial of the tax deduction for the R&D expenditures.