Form 7 Income Tax Rules 2026 pdf download and Key points
Form 7 Income Tax Rules 2026 pdf download and Key points
FORM NO. 7
[See rule 30(3)]
Application for approval of scientific research programmer 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.
1. What is FORM 7?
FORM 7 is the prescribed application form to be furnished by a sponsor seeking prior approval of a scientific research programme under section 45(3)(c) of the Income-tax Act, 2025.
2. What is the objective of FORM 7 ?
FORM 7 ensures that tax deduction is available only in respect of scientifically vetted and institutionally monitored research programmes, by mandating approval before commencement of the programme.
3. Who is required to furnish FORM 7?
Any person (referred to as the sponsor) who proposes to incur expenditure on a scientific research programme and seeks deduction under section 45(3)(c) is
required to furnish FORM 7.
4. What types of institutions can carry out the approved programme?
The scientific research programme must be carried out through:
a National Laboratory,
a University,
an Indian Institute of Technology, or
a specified person notified for this purpose.
5. Who is the prescribed authority for approval?
The prescribed authority is:
the Head of the National Laboratory, University or Indian Institute of Technology, as applicable; or
the Principal Scientific Adviser to the Government of India in the case of a specified person.
6. When should FORM 7 be furnished?
FORM 7 must be furnished before commencement of the scientific research programme. Approval is prospective in nature.
7. Can one FORM 7 be used for multiple programmes?
No. Separate FORM 7 must be furnished for each scientific research programme.
8. What information is required to be furnished in FORM 7?
FORM 7 requires details relating to:
the sponsor and its business activity;
past research expenditure and deductions, if any;
details of the proposed scientific research programme, including objectives, duration and estimated cost; and
particulars of the executing institution.
9. Are any research programmes excluded from approval?
Yes. Programmes relating purely to:
market research or sales promotion,
routine quality control or testing,
commercial production, or
routine data collection
are not eligible for approval.
10. What happens after FORM 7 is submitted?
The prescribed authority examines the application and grants or rejects approval by issuing an order in FN 008 within the prescribed time.
11. Does approval under FORM 7 automatically entitle the sponsor to deduction?
No. Approval of the programme is only a pre-condition. Deduction under section 45(3)(c) is subject to compliance with the Act, Rules and verification by the Incometax Department.
12. Can the approved cost or duration of the programme be revised?
No. The approved cost and duration of the programme cannot be enhanced or extended after approval.
13. What are the post-approval compliance requirements?
Post-approval, the sponsor and executing institution are required to:
maintain separate accounts for the programme;
furnish progress and expenditure reports; and
comply with reporting and completion requirements under Rule 30.
14. What are the consequences of non-compliance?
Non-compliance with conditions of approval or reporting requirements may result
in withdrawal of approval and denial of deduction.
Form 7 Income Tax Rules 2026 pdf download
Form No.7– Frequently Asked Questions
Guidance Note on Form 7
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