Form 11 Income Tax Rules 2026 pdf download and Key points

Last Updated on: April 25, 2026

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.

1. What is FORM 11 ?
FORM 11 is an application form prescribed under Rule 29 of the Income-tax Rules for entering into an agreement with the Department of Scientific and Industrial
Research (DSIR) for cooperation in respect of an in-house research and development (R&D) facility and for audit of accounts maintained by such facility, for
the purposes of section 45(2) of the Income-tax Act, 2025.
2. What is the purpose of FORM 11?
The purpose of FORM 11 is to:
 enable a company to seek approval of its in-house R&D facility;
 formalise cooperation between the company and DSIR through an agreement;
 ensure proper maintenance and audit of R&D accounts; and
 establish eligibility for claiming deduction in respect of in-house R&D expenditure under section 45(2), subject to statutory conditions.
3. Who is required to file FORM 11?
FORM 11 is required to be filed by a company engaged in biotechnology or manufacture or production of an eligible article or thing (not specified in the
Thirteenth Schedule) that maintains or proposes to maintain an in-house R&D facility and seeks approval under section 45(2).
4. With whom is the agreement under FORM 11 entered into?
The agreement is entered into between the applicant company and the Department of Scientific and Industrial Research (DSIR), Government of India.
5. Is FORM 11 a one-time form or required to be filed annually?
FORM 11 is generally a one-time application for approval of an in-house R&D facility. However, annual compliance and reporting obligations continue as
prescribed under the Act, Rules and the terms of the agreement. The annual progress report and annual expenditure details are required to be filed in Annexure A
and B of FORM 11 annually.
6. What information is required to be furnished in FORM 11?
FORM 11 requires disclosure of:
 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 DSIR recognition;
 proposed objectives of scientific research;
 undertakings relating to maintenance of accounts, audit and compliance;
 annexures detailing facility-wise expenditure and progress.
7. What is the role of DSIR in FORM 11?
DSIR evaluates the feasibility and genuineness of the in-house R&D facility, enters into an agreement with the company, and submits its reports to the jurisdictional Chief Commissioner of Income-tax within the prescribed time.
8. Does filing FORM 11 guarantee deduction under section 45(2)?
No. Filing and approval of FORM 11 is a pre-condition. Actual allowance of deduction depends on compliance with section 45(2), fulfilment of conditions in the
agreement, and verification by the Income-tax Department.
9. What are the key post-approval obligations of the company?
The company is required to:
 maintain separate audited accounts for R&D expenditure;
 submit annual progress reports to DSIR;
 attach audited R&D accounts with the return of income;
 ensure assets of the facility are used only for approved purposes;
 furnish annual information in Annexure I and Annexure II.
10. What happens if conditions of the agreement are violated?
Non-compliance with conditions of section 45(2), Rule 29 or the agreement may result in withdrawal of approval and denial of deduction.
11. How does FORM 11 differ from Forms FORM 7 –10?
FORM 11 relates specifically to in-house R&D facilities of companies under section 45(2), whereas Forms FORM 7 –10 relate to sponsored scientific research
programmes under section 45(3)(c).

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Form 11 Income Tax Rules 2026 pdf download and Key points

Form 11 Income Tax Rules 2026 pdf download and Key points

Form 11 Income Tax Rules 2026 pdf download

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