Quick Summary
The Income-tax Act, 2025 has introduced a structured compliance and reporting mechanism for companies claiming deductions on in-house research and development (RD) expenditure. One of the important components of this framework is FORM 12, prescribed under Section 45(2) read with Rule 29 of the Incom
Daily Limit Reached
You have reached your daily limit of 2 Free News
Subscribe to CCI PRO for unlimited access
Why Upgrade to CCI PRO?
- No Ads
- WhatsApp Community
- Daily E-Newsletter
- Unlimited News Access
- Profile Visitors
- Link Social Profiles
- Featured Job Posts
- Pro Badge
- Expert GST Guidance
- Unlimited Forum Replies
- Download Content in PDF
BEST VALUE
2 YEAR PLAN
3,499
(Excl. of GST ₹629)
1 YEAR PLAN
1,999
(Excl. of GST ₹359)
3 MONTHS PLAN
999
(Excl of GST ₹179)
View all CCI PRO benfits
Already a PRO member? Login here for an ad-free experience.
FAQ :
Form 12 is a statutory report introduced to track and verify eligible R&D expenditure claims made by companies under Section 45(2) of the Income-tax Act, 2025.
Form 12 is not filed by the company claiming the deduction. Instead, it is furnished by the prescribed authority, such as the Secretary of the Department of Scientific and Industrial Research (DSIR), to the jurisdictional Chief Commissioner of Income-tax.
The purpose of Form 12 is to examine and evaluate in-house R&D facilities, certify their adequacy and recognition status, report eligible expenditures, and enable tax authorities to verify deduction claims.
No, Form 12 is a reporting and certification instrument. The final allowability of the deduction is subject to verification by the Income-tax Department during the assessment process.
Form 12 includes details about the company, the nature of its business and research objectives, the R&D facility, DSIR recognition, eligible capital and revenue expenditure, and information on asset disposal if applicable.
No, Form 12 is required to be furnished periodically for every approved in-house R&D facility, covering the expenditure incurred during the relevant tax year, making it an annual compliance document.
CAclubindia
