Prescribed authority, procedure, form, manner and conditions for approval by a company for deduction for expenditure on scientific research under section 45(3)(b)

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....orm, and Timeline (a) Application timing (general rule) • Apply in Form No. 17 to the Commissioner of Income-tax having jurisdiction over the applicant • Must be filed in the financial year before the relevant tax year. (b) Special cases (flexibility) • Application allowed during the same tax year if: • Starting from AY 2026-27, or • Company is newly incorporated. (c) Verify the form - The person who is authorised to verify the return of income under section 265, as applicable to the applicant shall verify Form No. 17. (d) Copy to CCIT - The applicant shall send a copy of the application to the prescribed authority, accompanied by the acknowledg....

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....f the activity of the company • send his recommendation to the Chief Commissioner of Income-tax, for grant of approval or rejection of the application, before the expiry of the period of three months from the end of the quarter in which the application was received in his office. • (ii) The Chief Commissioner of Income-tax may, before granting approval under section 45(3)(b), • call for such documents or information from the applicant as he considers necessary and • may get any inquiry made for verification of the genuineness of the activity of the applicant. • (iii) Order of Approval or Rejection • The Chef Commissioner of Income Tax pass an order granting a....

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....the company shall be used for scientific research; (b) Used Own resources - the applicant company shall carry on scientific research through its own employees using its own assets; (c) Maintain Separate Books of Account and Audit • a company approved under section 45(3)(b), shall maintain separate books of account in respect of the sums received by it for scientific research, • reflect therein the amount used for carrying on research, • get such books of account audited by an accountant as defined under section 515(3)(b), and • furnish the report of such audit duly signed and verified by such accountant to the Commissioner of Income-tax having jurisdiction over the case, ....