Form 7 Income Tax Rules 2026 pdf download and Key points
FORM NO. 7
[See rule 30(3)]
Application for approval of scientific research programme under section 45(3)(c)
Under the Income-tax Rules, 2026, Form No. 7 replaces the erstwhile Form 3CG. It is governed by Section 45(3)(c) of the Income-tax Act, 2025, and Rule 30 of the Income-tax Rules, 2026.
Here are all the key points regarding Form No. 7:
1. Purpose of the Form Form 7 is a statutory application through which a sponsor seeks prior approval of a scientific research programme. Obtaining this approval is a mandatory pre-condition for the sponsor to claim tax deductions on the research expenditure under Section 45(3)(c) of the Act. It ensures that tax incentives are only granted to genuine, institutionally monitored scientific research.
2. Applicability (Who Should File) The form must be filed by any person (referred to as the sponsor) who proposes to fund or incur expenditure on a scientific research programme. The research must be carried out through specific executing institutions, namely a National Laboratory, University, Indian Institute of Technology (IIT), or a specified person.
3. Frequency and Due Date
- When to File: The application must be filed before the commencement of the scientific research programme, as the approval is strictly prospective in nature.
- Frequency: The form is programme-specific and cost-specific. A separate Form 7 must be furnished for each individual scientific research programme; one form cannot be used for multiple programmes.
4. Prescribed Authority (Who Approves It) The competent authority that evaluates the application and grants approval is:
- The Head of the National Laboratory, University, or IIT, as applicable.
- The Principal Scientific Adviser to the Government of India (or an authorised officer) in the case of a “specified person”.
5. Ineligible Programmes Certain activities are specifically excluded from getting approval under this framework. Programmes relating purely to market research, sales promotion, routine quality control or testing, commercial production, or routine data collection are not eligible for approval.
6. Structure of the Form Form 7 systematically captures information in two main parts:
- Part A (Particulars of the Sponsor): Captures the sponsor’s identification details (Name, Address, PAN, Email, Contact), the nature of their business, annual turnover during the past three tax years, and their past annual expenditure/deductions on scientific research.
- Part B (Programme Details): Captures the specific details of the proposed scientific research programme, including its objectives, duration, estimated cost, and the particulars of the executing institution.
7. Mandatory Documents Required The application must be accompanied by supporting annexures, which include:
- A copy of the latest Annual Report along with the balance sheet, where applicable.
- A detailed note on the research and development facilities.
8. Outcome of Processing Upon receiving Form 7, the prescribed authority evaluates the feasibility and scientific merit of the proposed programme. After examination, the authority will formally communicate the approval or rejection of the programme by issuing an order in Form No. 8 within a prescribed timeframe.