Form 37 Income Tax Rules 2026 pdf download and Key points
FORM NO. 37
[See rule 71]
Certificate under section 152(5) of the Act for Patentees in receipt of royalty income
Under the Income-tax Rules, 2026, Form No. 37 replaces the erstwhile Form 10CCE. It is governed by Section 152(5) of the Income-tax Act, 2025 (which replaces the old Section 80RRB) and Rule 71 of the Income-tax Rules, 2026.
Here are all the key points regarding Form No. 37:
1. Purpose of the Form Form 37 is the prescribed statutory certificate used by a patentee to claim a tax deduction in respect of royalty income earned on patents. The patent must be registered on or after 01.04.2003 under the Patents Act, 1970.
2. Applicability (Who Should File) The form must be filed by an individual resident patentee who receives income by way of royalty on patents during the relevant tax year and intends to claim the tax deduction under Section 152(5).
3. Frequency and Due Date
- Due Date: The certificate must be filed electronically on or before the due date for filing the return of income prescribed under Section 263(1)(c) of the Income-tax Act, 2025.
- Is it Mandatory? Yes, filing a valid Form 37 within the specified time limit is a strict mandatory condition for making an admissible claim of deduction.
4. Dual Verification and Certification Process Similar to Form 36, Form 37 has a unique dual-verification requirement:
- Self-Declaration by Patentee: The patentee must make a self-declaration in Part B, affirming that the royalty income declared is eligible for the deduction and is correct.
- Certification by Controller of Patents: The Controller of Patents in whose jurisdiction the patent was registered must independently certify the details of the patent, the patentee, and any compulsory license issued in respect of such patent.
5. Structure of the Form The form is structured to capture comprehensive details:
- Part A (Basic Information): Captures the Patentee’s Name, Address, Permanent Account Number (PAN), and the relevant Tax Year. (PAN is mandatory; the form cannot be submitted without it).
- Part B (Details of Patent & Royalty): Captures the Patent Registration Number, Title, Date of Registration, Location of the patent office, Details of the person paying the royalty (PAN of the payer can be left blank only if it is a foreign entity), amounts received in INR and foreign currency, and the final amount of deduction claimed.
6. Foreign Income Condition If the royalty income arises from outside India, the deduction is subject to the condition that the foreign source income must be repatriated (brought into India in convertible foreign exchange) within six months, unless an extended time is officially permitted by the competent authority.
7. Mode of Filing and Prerequisites
- Online Only: Form 37 can only be submitted electronically on the Income Tax e-Filing portal using a Digital Signature Certificate (DSC) or an Electronic Verification Code (EVC). Offline filing is not permitted.
- No Edits Allowed: Once the form is validly submitted (post-declarations by the patentee and Controller) and an acknowledgment is generated, it cannot be edited.
8. Mandatory Documents While it is not mandatory to attach physical documents directly to the form during e-filing, the patentee must rely on the following documents to accurately fill the details:
- The Royalty Agreement and statements of royalty paid.
- Bank statements, advisories, or Foreign Inward Remittance Certificates (FIRC) for foreign income.
- Approval of the competent authority for any extension of time for foreign remittances.
- A copy of any compulsory license issued by the Controller of Patents.
9. Key Updates in the 2026 Rules
- Routing to Patent Office: A new field for the “location of the patent office” was introduced to seamlessly transfer the electronic form to the concerned patent office for their required verification.
- Payer’s PAN: A new structured field requires the reporting of all royalty income details, explicitly including the PAN of the payer, which was not required in the old form.
- Foreign Source Tracking: Separate fields have been introduced to explicitly capture foreign source income, timelines for inward remittance, and competent authority extensions.