Form 8 Income Tax Rules 2026 pdf download and Key points
FORM NO. 8
[See rule 30(4)]
Order of approval of Scientific Research Programme under section 45(3)(c)
Under the Income-tax Rules, 2026, Form No. 8 replaces the erstwhile Form 3CH. 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. 8:
1. Purpose of the Form Unlike most forms that are applications or returns, Form 8 is the prescribed order of approval issued by the prescribed authority for a scientific research programme. It formally records the approval of a programme pursuant to an application made by a sponsor in Form 7.
2. Significance and Tax Implications
- Statutory Pre-condition: Form 8 serves as a mandatory statutory pre-condition for the sponsor to claim tax deductions on eligible scientific research expenditure under Section 45(3)(c).
- Programme & Cost Specific: The approval is strictly programme-specific and cost-specific. Separate approvals (and thus separate Form 8 orders) are required for each distinct research programme.
- No Guarantee of Deduction: While mandatory, possessing Form 8 does not automatically guarantee the tax deduction. The actual deduction is still subject to the sponsor’s fulfillment of statutory conditions, post-approval obligations, and verification by the Income-tax Department.
3. Who Issues It (Prescribed Authority) Form 8 is issued and signed by the prescribed authority, which is:
- The Head of the National Laboratory, University, or Indian Institute of Technology (IIT) executing the programme; OR
- An authorised officer (not below the rank of Deputy Secretary) authorised by the Principal Scientific Adviser to the Government of India, in the case of a “specified person”.
4. Who Receives It Form 8 is not filed by the sponsor. The prescribed authority issues copies of the order to:
- The sponsor (who must retain it and produce it to support their tax return claims).
- The Chief Commissioner of Income-tax having jurisdiction over the sponsor.
- The Department of Scientific and Industrial Research.
- Other concerned scientific and governmental authorities.
5. Timelines for Issuance The prescribed authority is legally mandated to pass the approval order in Form 8 within two months from the end of the month in which the sponsor’s application (Form 7) was received.
6. Structure and Contents of the Order The form systematically captures the boundaries within which the programme must be executed, including:
- Basic Details: Particulars of the sponsor (Name, Address, PAN, Email) and the executing institution.
- Programme Details: Title, purpose, commencement date, and duration (in months) of the research.
- Approved Tax Years: The specific tax year(s) for which the programme is approved, which cannot exceed five tax years.
- Financial Limits: The approved total cost of the programme.
- Annexures/Conditions: Attached annexures specify the payment terms, detailed purpose, and any other conditions imposed by the authority (e.g., rules regarding the utilisation of patent rights and commercialisation).
7. Post-Approval Constraints and Obligations
- No Extensions or Escalations: Once Form 8 is issued, the prescribed authority cannot extend the duration of the programme or approve any escalation in the project’s cost.
- Compliance: After receiving Form 8, the sponsor and executing institution are bound to maintain separate accounts, audit programme expenditures, submit periodic progress reports, and file a final completion certificate. They are also restricted from disposing of assets acquired for the programme without proper approval.
- Consequences of Breach: Violation of any conditions specified in Form 8 or Rule 30 may lead to the immediate withdrawal of the approval and denial of the tax deduction.