Form 65 Income Tax Rules 2026 pdf download and Key points

FORM NO. 65
[See rule 134]
Form for opting for taxation of income by way of royalty in respect of patent

Under the Income-tax Rules, 2026, Form No. 65 (which replaces the erstwhile Form 3CFA) is the statutory application used by taxpayers to opt for the taxation of income by way of royalty in respect of a patent. It is governed by Section 194(1) (Table: Sl. No. 2) of the Income-tax Act, 2025, and Rule 134 of the Income-tax Rules, 2026.

Here are all the key points regarding Form No. 65:

1. Purpose of the Form (“Patent Box Regime”) Form 65 allows an eligible taxpayer to be taxed at a special, concessional flat rate of 10% (plus applicable surcharge and cess) on the gross amount of royalty income earned from a patent, instead of the normal slab rates. This provision is known as the “Patent Box Regime” and is designed to encourage indigenous research and development by providing tax incentives for patents developed and registered in India.

2. Applicability (Who Should File) The form must be filed by any resident in India (whether an individual, firm, HUF, company, etc.) who earns royalty income on an Indian-developed and registered patent and wishes to avail of this concessional rate.

Note: Non-resident individuals or entities are strictly ineligible to benefit from this concessional tax regime.

3. Strict Conditions and 5-Year Lock-in

No Other Deductions: A key condition of opting for this 10% concessional rate is that the taxpayer must forgo all other deductions. No expenditure or allowance is allowed as a deduction against this specific royalty income.
5-Year Commitment: Once this option is exercised, the taxpayer must adhere to this taxation method for the next five consecutive tax years. Failing to do so makes the taxpayer ineligible to opt for this regime for the five years following the year of default.

4. Due Date and Frequency

Frequency: It is an application form generally filed once when the taxpayer decides to exercise the option to opt into the regime.
Due Date: It must be filed on or before the due date for furnishing the return of income for the relevant tax year, as specified under Section 263(1) of the Act.
No Revision: Once validly filed for a relevant tax year, Form 65 cannot be revised or withdrawn for that year.

5. Structure of the Form The form is divided into three key parts to capture general and specific patent-related details:

Part A (Particulars of the assessee): Captures basic details including Name, Address, PAN, Residential Status, Email ID, Contact Number, Tax Year, and the Nature of business or activities.
Part B (Particulars of tax year): Captures specific details of the patent (such as the patent number and date of grant), the amount and nature of the royalty income earned, details of expenditure incurred on the patent in India, and the total expenditure.
Part C (Declaration/Verification): The formal declaration section where the assessee (or an authorized person) verifies that the information is correct and complete.

6. Mandatory Documents Required To successfully file Form 65, the following documents are required:

A self-certified copy of the Patent grant certificate.
Proof of identity and address (PAN card and Aadhaar card).
Audited annual accounts (particularly if the taxpayer is a business or association).
Bank statements (to verify income and expenses).
Form 26AS (to reconcile any tax deducted at source).

7. Mode of Filing

Online Only: Form 65 must be filed electronically through the Income Tax e-Filing portal. Offline submission is not allowed.
Verification: The final submission must be e-verified using either a Digital Signature Certificate (DSC) or an Electronic Verification Code (EVC).

Form 65 Income Tax Rules 2026 pdf download and Key points

Form 65 Income Tax Rules 2026 pdf download and Key points

Form 65 Income Tax Rules 2026 pdf download

Form No.65– Frequently Asked Questions

Guidance Note on Form 65