Income-tax Form No. 14: Order Approving In-house R&D Facility – Section 45(2)

Form 14 under the Income-tax Act, 2025 is the statutory approval order issued by the Department of Scientific and Industrial Research (DSIR) for an in-house research and development (R&D) facility of a company under Section 45(2) read with Rule 29. It formally records approval of the facility, including details such as the company’s identity, nature of business, research objectives, facility location, and DSIR recognition. The form serves as the foundational basis for claiming deduction on R&D expenditure, though such deduction is subject to fulfilment of statutory conditions and verification by tax authorities. Approval is facility-specific, time-bound, and dependent on continued compliance and DSIR recognition. It is not required to be filed by the company but must be retained for substantiating claims. Non-compliance or withdrawal of DSIR recognition may result in withdrawal of approval. Form 14 operates within a structured compliance framework alongside related forms governing application, reporting, and audit.

Income Tax Department
Ministry of Finance, Government of India

FAQ’s pertaining to Income Tax Form 14: Order of approval of in-house research and development facility under section 45(2) of Income Tax Act, 2025

FORM 14- Frequently Asked Questions (FAQs)

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

Q1. What is FORM 14?

Ans FORM 14 is the prescribed order of approval issued by the Department of Scientific and Industrial Research (DSIR) for an in-house research and development (R&D) facility of a company under section 45(2) of the Income-tax Act, 2025, read with RULE 29 of the Income-tax Rules.

Q2. What is the purpose of FORM 14?

Ans The purpose of FORM 14 is to:

• formally grant approval to an in-house R&D facility;
• record the nature and objectives of scientific research to be undertaken;
• link the approval to DSIR recognition and the application made by the company; and
• serve as the statutory basis for claiming deduction under section 45(2), subject to compliance with prescribed conditions.

Q3. Who issues FORM 14?

Ans FORM 14 is issued by the Secretary, Department of Scientific and Industrial Research, acting as the prescribed authority under RULE 29.

Q4. Who receives FORM 14?

Ans FORM 14 is issued to the company maintaining the in-house R&D facility. A copy is also forwarded to the Chief Commissioner of Income-tax having jurisdiction over the company.

Q5. Is FORM 14 required to be filed by the company?

Ans No. FORM 14 is not a filing form. It is an approval order issued by the prescribed authority. The company is required to retain the form and produce it, where required, in support of deduction claims.

Q6. What information is contained in FORM 14?

Ans FORM 14 contains details such as:

• name and address of the company;
• nature of business and eligible products, if any;
• objectives of the scientific research;
• location of the in-house R&D facility;
• reference and date of application;
• DSIR recognition details; and
• confirmation of approval for purposes of section 45(2).

Q7. Is approval under FORM 14 facility-specific?

Ans  Yes. Approval granted through FORM 14 is facility-specific and applies only to the in-house R&D facility described in the order.

Q8. Does issuance of FORM 14 automatically entitle the company to deduction?

Ans No. FORM 14 evidences approval of the facility. Deduction under section 45(2) is allowable only upon compliance with statutory conditions and verification by the Income-tax Department.

Q9. Is the approval under FORM 14 time-bound?

Ans Approval under FORM 14 is subject to the validity period of DSIR recognition and continued compliance with conditions under section 45(2) and RULE 29.

Q10. Can approval granted under FORM 14 be withdrawn?

Ans Yes. Non-compliance with statutory provisions, conditions of approval or withdrawal of DSIR recognition may result in withdrawal of approval.

Q11. How does FORM 14 relate to other in-house R&D forms?

Ans FORM 14 is the approval order, which operates in conjunction with:

• FORM 11 (application and agreement);
• FORM 12 (report of prescribed authority);
• FORM 13 (audit report by accountant).

Guidance Note pertaining to Income Tax Form 14: Order of approval of in-house research and development facility under section 45(2) of Income Tax Act, 2025

Proposed FORM 14 is the statutory order through which an in-house research and development (R&D) facility of a company is formally approved for the purposes of section 45(2) of the Income-tax Act, 2025. The form is issued by the Department of Scientific and Industrial Research (DSIR) and represents the foundational approval for availing in-house R&D related tax incentives.

Q2. Legislative Framework

Ans Section 45(2) of the Income-tax Act, 2025 provides for deduction in respect of expenditure incurred on approved in-house R&D facilities. RULE 29 of the Income-tax Rules prescribes the procedure, authority and forms for approval and oversight. FORM 14 operationalises the approval stage of this statutory framework.

Q3. Role of FORM 14 in the Compliance Lifecycle

Ans FORM 14 represents the approval stage in the in-house R&D compliance lifecycle:

Application and agreement by the company in FORM 11;

1. Examination of facility and recognition by DSIR;

2. Grant of approval through FORM 14;

3. Ongoing reporting and audit through Forms 12 and 13;

4. Verification of deduction claims by the Income-tax Department.

Q4. Authority Competent to Issue FORM 14

Ans FORM 14 is issued and signed by the Secretary, Department of Scientific and Industrial Research, acting as the prescribed authority under RULE 29.

Q5. Contents of FORM 14

Ans FORM 14 records:

• identity and address of the company;
• nature of business and eligible products;
• objectives of scientific research to be undertaken;
• location of the in-house R&D facility;
• reference and date of the application in FORM 11;
• details and validity of DSIR recognition;
• confirmation of approval for purposes of section 45(2).

Q6. Nature and Effect of Approval

Ans Approval granted through FORM 14:

• is facility-specific;
• is conditional upon continued DSIR recognition;
• does not by itself result in allowance of deduction.

Deduction under section 45(2) is allowable only upon fulfilment of statutory conditions and verification by the Income-tax Department.

Q7. Communication of Approval

Ans Copies of FORM 14 are required to be forwarded to:

• the company;
• the Chief Commissioner of Income-tax having jurisdiction over the company.

This ensures coordination between scientific oversight and tax administration.

Q8.  Withdrawal or Modification of Approval

Ans Approval under FORM 14 may be withdrawn in cases of:

• non-compliance with conditions under section 45(2) or RULE 29;
• withdrawal or expiry of DSIR recognition;
• misutilisation of the in-house R&D facility.

Q9. Conclusion

Ans FORM 14 is a critical instrument in the in-house research and development incentive regime under the Income-tax Act, 2025. By formally approving the facility and defining the scope of eligible research, it enables structured oversight and supports effective administration of deductions under section 45(2).