Quick Summary
The Income Tax Act 2025 has introduced Form 65, offering a concessional 10% tax rate on royalty income from patents. This move aligns with India's broader "Patent Box Regime," aimed at rewarding inventors and businesses investing in intellectual property. Here's everything taxpayers, professionals and businesses need to know. What is Form 65? Form 65 is an Income tax form used by eligible resident taxpayers to opt for a concessional tax rate of 10% on income earned by way of royalty from a
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FAQ :
Form 65 is an Income Tax form that allows eligible resident taxpayers in India to opt for a concessional tax rate of 10% on royalty income earned from patents developed and registered in India.
The primary benefit is claiming a lower tax rate of 10% on royalty income from eligible patents, instead of the usual slab rates. It also allows taxpayers to opt into the 'Patent Box Regime'.
Any resident in India, including individuals, firms, and companies, who earns royalty income from a patent developed and registered in India and wishes to avail the 10% tax rate is eligible.
A key condition is that no expenditure or allowance can be deducted against the royalty income when opting for the 10% rate. Once opted, taxpayers must adhere to this method for five consecutive tax years.
No, Form 65 can only be submitted electronically through the Income Tax e-Filing portal.
Required documents include a self-certified copy of the patent grant certificate, proof of identity and address (PAN, Aadhaar), audited annual accounts (if applicable), bank statements, and Form 26AS.
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