FORM 13- Frequently Asked Questions (FAQs)

Form of Audit Report under Section 45(2) read with RULE 29 of the Income-tax Rules, 2026

Name of form as per I.T. Rules, 1962	Form 3CLA	Name of form as per I.T. Rules, 2026	FORM 13
Corresponding section of I.T. Act, 1961	Section 35	Corresponding section of I.T. Act, 2025	Section 45(2)
Corresponding Rule of I.T. Rules, 1962	6	Corresponding Rule of I.T. Rules, 2026	RULE 29

1. What is FORM 13?

FORM 13 is an audit report furnished by an accountant in respect of an approved in house scientific research and development (R&D) facility under section 45(2) of the Income-tax Act, 2025, read with RULE 29 of the Income-tax Rules. It certifies the maintenance of accounts and the correctness of expenditure incurred on the approved facility.

2. What is the purpose of FORM 13?

The purpose of FORM 13 is to:

• certify that separate accounts for the approved in-house R&D facility have been maintained;
• report whether such accounts have been satisfactorily maintained;
• certify whether the expenditure incurred is in consonance with guidelines issued by the Department of Scientific and Industrial Research (DSIR);
• provide audited details of capital and revenue expenditure incurred on the facility.

3. Who is required to furnish FORM 13?

FORM 13 is required to be furnished by the company claiming deduction under section 45(2), through an accountant as defined in section 515(3)(b) of the Income-tax Act, 2025.

4. Who is an ‘accountant’ for the purposes of FORM 13?

An ‘accountant’ means an accountant as defined in section 515(3)(b) of the Income-tax Act, 2025, including a chartered accountant holding a valid certificate of practice.

5. To whom is FORM 13 furnished?

FORM 13 is required to be furnished to the Income-tax Department and is to be attached with or furnished in support of the return of income filed by the company for the relevant tax year.

6. What information is required to be reported in FORM 13?

FORM 13 requires reporting of:

• details of approval of the in-house R&D facility;
• confirmation of maintenance of separate accounts;
• auditor’s opinion on adequacy and correctness of accounts;
• certification of compliance with DSIR guidelines;
• audited break-up of capital and revenue expenditure incurred on the facility.

7. Is FORM 13 required to be furnished every year?

Yes. FORM 13 is required to be furnished annually for each tax year in which deduction under section 45(2) is claimed.

8. Does furnishing FORM 13 guarantee allowance of deduction?

No. Furnishing of FORM 13 is a mandatory compliance requirement but does not, by itself, guarantee allowance of deduction. Deduction is subject to verification and assessment by the Income-tax Department.

9. What is the significance of adverse remarks in FORM 13?

Adverse remarks regarding maintenance of accounts or non-consonance with DSIR guidelines may lead to further scrutiny and may result in denial or restriction of deduction under section 45(2).

10. How does FORM 13 differ from Form 3CL?

Form 3CL is a report furnished by the prescribed authority (DSIR) to the tax authorities, whereas FORM 13 is an audit report furnished by an independent accountant certifying the expenditure incurred by the company.

11. How does FORM 13 fit into the overall compliance framework?

FORM 13 completes the audit and certification layer of the in-house R&D incentive regime, complementing approval under FORM 14 and reporting under FORM 12 for deduction under section 45(2).

In-house R&D audit report defines compliance for deduction claims through separate accounts and certified expenditure. FORM 13 is the accountant's annual audit report for an approved in-house scientific research and development facility claimed under section 45(2). It certifies maintenance of separate accounts, correctness of expenditure, and conformity with DSIR guidelines, and must be attached with or furnished in support of the company's return of income. The form is a mandatory compliance requirement, but deduction remains subject to verification and assessment.