Income-tax Form No. 7: Application for Approval of Scientific Research Programme

Form 7, prescribed under Rule 30 of the Income-tax Rules, 2026 , is a mandatory application for sponsors seeking prior approval of a scientific research programme under section 45(3)(c) of the Income-tax Act, 2025. It establishes a pre-approval, programme-specific framework ensuring that tax deductions are granted only for genuine, institutionally vetted research. The form must be filed before commencement of the programme and separately for each project. Eligible programmes must be conducted through recognized institutions such as National Laboratories, Universities, IITs, or specified authorities, while activities like market research, routine testing, or commercial production are excluded. The prescribed authority evaluates scientific merit and feasibility before granting approval, which is a prerequisite but not an automatic entitlement to deduction. Post-approval, strict compliance requirements apply, including maintaining separate accounts and submitting progress reports. Non-compliance may lead to withdrawal of approval and denial of tax benefits, ensuring accountability and proper utilization of funds.

FAQs on Income Tax Form No. 7 related to Application for approval of scientific research programme under section 45(3)(c) of Income Tax Act, 2025

Form of Application under Section 45(3)(c) read with Rule 30 of the Income- tax Rules, 2026

1. What is FORM 7?

Ans. 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 ?

Ans. 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?

Ans. 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?

Ans. 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?

Ans. 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?

Ans. 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?

Ans. No. Separate FORM 7 must be furnished for each scientific research programme.

8. What information is required to be furnished in FORM 7?

Ans. 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?

Ans. 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?

Ans. 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?

Ans. 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 Income- tax Department.

12. Can the approved cost or duration of the programme be revised?

Ans. No. The approved cost and duration of the programme cannot be enhanced or extended after approval.

13. What are the post-approval compliance requirements?

Ans. 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?

Ans. Non-compliance with conditions of approval or reporting requirements may result in withdrawal of approval and denial of deduction.

Guidance Notes on Income Tax Form No. 7 related to Application for approval of scientific research programme under section 45(3)(c) of Income Tax Act, 2025

Proposed FORM 7 is the statutory application through which a sponsor seeks prior approval of a scientific research programme for the purposes of section 45(3)(c) of the Income-tax Act, 2025. The form establishes a pre-approval, programme-specific framework ensuring that tax incentives are extended only to genuine scientific research subjected to institutional scrutiny and post-approval monitoring.

2. Legislative Framework

Ans. Section 45(3)(c) of the Income-tax Act, 2025 provides for deduction in respect of expenditure incurred by a sponsor on an approved scientific research programme. Rule 30 of the Income-tax Rules prescribes the procedure, authority and conditions for approval. FORM 7 operationalizes the application stage of this framework

3. Scope and Applicability

Ans. FORM 7 applies to any sponsor proposing to fund or incur expenditure on a scientific research programme carried out through a National Laboratory, University, Indian Institute of Technology or specified person. Approval is programme-specific and mandatory before commencement of the research.

4. Prescribed Authority

Ans. The prescribed authority competent to grant approval under FORM 7 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 or an authorised officer, in the case of a specified person.

5. Structure of FORM 7

Ans. FORM 7 is divided into two parts:

Part A – Particulars of the Sponsor

Captures identification details, nature of business, prior research expenditure, past deduction claims and existing R&D capabilities.

Part B – Particulars of the Scientific Research Programme

Captures details of the executing institution, objectives, scope, duration, approved cost, funding pattern and technical particulars of the proposed programme.

6. Eligible Scientific Research Programmes

Ans. Only programmes involving genuine scientific research are eligible. Programmes relating purely to market research, quality control, commercial production or routine data collection are outside the scope of approval.

7. Examination and Grant of Approval

Ans. Upon receipt of FORM 7, the prescribed authority evaluates the feasibility and scientific merit of the programme. Approval or rejection is communicated through an order in Form 8 within the prescribed time.

8. Nature and Effect of Approval

Approval granted pursuant to FORM 7:

• is programme-specific and cost-specific;
• does not by itself result in allowance of deduction;
• operates as a pre-condition for claiming deduction under section 45(3)(c);

9. Post-Approval Compliance

Ans. Following approval, the sponsor and executing institution are required to:

• maintain separate accounts for the programme;
• furnish periodic progress and expenditure reports;
• ensure utilisation of funds strictly for approved purposes;
• submit completion reports on conclusion of the programme

10. Limitations

Ans. The prescribed authority are not empowered to extend the duration of programme or approve any escalation in costs and hence, the sponsors must be extremely accurate in their initial cost and duration estimates.

11. Conclusion

Ans. FORM 7 is the entry point of the sponsored scientific research incentive regime under the Income-tax Act, 2025. Accurate and timely furnishing of the form is essential to enable approval, ensure compliance and safeguard eligibility for deduction under section 45(3)(c).