Form 3CJ, Download Income Tax Form 3CJ in PDF Format

FORM NO. 3CJ for Report to be submitted by the prescribed authority to the Director General after Approval of Scientific Research Programme. FORM NO. 3CJ in this form is required to be sent only in cases where approval to the programme is granted. The report must be sent within three months from the date of granting approval.

(1) For the purposes of [clause (i) of] sub-section (1) and sub-section (2A) of] section 35, the prescribed authority shall be the Director General (Income-tax Exemptions) in concurrence with the Secretary, Department of Scientific and Industrial Research, Government of India.

(1A) For the purposes of sub-section (2AA) of section 35, the prescribed authority shall be—

(a)  in the case of a National Laboratory or a University or an Indian Institute of Technology, the head of the National Laboratory or the University or the Indian Institute of Technology, as the case may be; and

(b)  in the case of a specified person, the Principal Scientific Adviser to the Government of India.]

(1B) For the purposes of sub-section (2AB) of section 35, the prescribed authority shall be the Secretary, Department of Scientific and Industrial Research.]

(3) The application for obtaining approval under sub-section (2AA) of section 35 shall be made by a sponsor in Form No. 3CG.

Explanation : For the purposes of this rule “sponsor” means a person who makes an application in Form No. 3CG.]

(4) The application required to be furnished by a company under sub-section (2AB) of section 35 shall be in Form No. 3CK.]

[(5) The head of the National Laboratory or the University or the Indian Institute of Technology or the Principal Scientific Adviser to the Government of India] shall, if he is satisfied that it is feasible to carry out the scientific research programme then, subject to other conditions prescribed in this rule and section 35(2AA) of the Act, pass an order in writing in Form No. 3CH :

Provided that a reasonable opportunity of being heard shall be granted to the sponsor before rejecting an application :

Provided further that an order under this rule shall be passed within two months of the receipt of the application under sub-rule (1A) :]

[Provided also that the Principal Scientific Adviser to the Government of India may authorise an officer who is not below the rank of a Deputy Secretary to issue such order, after the scientific research programme has been approved by him.]

[(5A) The prescribed authority shall, if he is satisfied that the conditions provided in this rule and in sub-section (2AB) of section 35 of the Act are fulfilled, pass an order in writing in Form No. 3CM :

Provided that a reasonable opportunity of being heard shall be granted to the company before rejecting an application.]

[(6) The National Laboratory, [University, Indian Institute of Technology or specified person] shall issue a receipt of payment for carrying out an approved programme of scientific research under sub-section (2AA) in Form No. 3CI.]

[(7) Approval of a programme under sub-section (2AA) shall be subject to the following conditions :—

(a)  The programme should not relate purely to market research, sales promotion, quality control, testing, commercial production, style changes, routine data collection or activities of a like nature ;

(b)  The prescribed authority shall submit its report to the Director General (Income-tax Exemptions) in Form No. 3CJ within a period of three months from the date of granting approval to the programme :

[Provided that the officer authorised by the prescribed authority, being the Principal Scientific Adviser to the Government of India, under sub-rule (5) shall submit such report to the Director General (Income-tax Exemptions);]

(c)  The sponsor and the National Laboratory, [University, Indian Institute of Technology or specified person], as the case may be, shall submit to the Director General (Income-tax Exemptions) a yearly statement showing progress of implementation of the approved programme and actuals of expenditure incurred thereon ;

(d)  The prescribed authority shall not extend the duration of the programme or approve any escalation in costs ;

(e)  The National Laboratory, University, Indian Institute of Technology or specified person], as the case may be, shall maintain a separate account for each approved programme ; which shall be audited annually and a copy thereof shall be furnished to the Director General (Income-tax Exemptions) by 31st day of October of each succeeding year;

(f)  Assets acquired by the prescribed authority for executing the approved programme shall not be disposed of without the approval of the Director General (Income-tax Exemptions);

(g)  On completion of the approved programme, a completion certificate along with a copy of the report on the research activities carried out and salient features of the result obtained and its further application for commercial exploitation shall be jointly submitted by the sponsor and the National Laboratory, University, Indian Institute of Technology or specified person] to the Director General (Income-tax Exemptions) ;

(h)  A copy of the audited statement of accounts for the approved programme shall be submitted by the Head of the National Laboratory, University or Indian Institute of Technology or the Principal Scientific Adviser to the Government of India] to the Director General (Income-tax Exemptions) within six months of the completion of the programme.

(7A) Approval of expenditure incurred on in-house research and development facility by a company under sub-section (2AB) of section 35 shall be subject to the following conditions, namely :—

(a)  The facility should not relate purely to market research, sales promotion, quality control, testing, commercial production, style changes, routine data collection or activities of a like nature;

(b)  The prescribed authority shall submit its report in relation to the approval of in-house Research and Development facility in Form No. 3CL to the Director General (Income-tax Exemptions) within sixty days of its granting approval;

(c)  The company shall maintain a separate account for each approved facility; which shall be audited annually and a copy thereof shall be furnished to the Secretary, Department of Scientific and Industrial Research by 31st day of October of each succeeding year.

Explanation : For the purposes of this sub-rule the expression “audited” means the audit of accounts by an accountant, as defined in the Explanation below sub-section (2) of section 288 of the Income-tax Act, 1961;

(d)  Assets acquired in respect of development of scientific research and development facility shall not be disposed of without the approval of the Secretary, Department of Scientific and Industrial Research.

 

FORM NO. 3CJ

[See rule 6(7)]

Report to be submitted by the prescribed authority to the Director General
(Income-tax Exemptions) after approval of scientific research programme
under section 35(2AA) of the Income-tax Act, 1961

1.

Name and address of the National Laboratory, University, Indian Institute of Technology or specified person including Telex/Fax/Phone numbers

 

2.

Name and designation of the Prescribed Authority

 

3.

Agency under which the National Laboratory is functioning (Indian Council of Agricultural Research/Indian Council of Medical Research/Council of Scientific and Industrial Research/Defence Research and Development Organisation/Department of Electronics/Department of Bio-technology/Department of Atomic Energy)

 

4.

Name and address of the sponsor including Telex/Fax/Phone numbers

 

5.

Permanent Account Number (PAN) of the sponsor

 

6.

Nature of Business/activity of the sponsor (enclose copy of latest Annual Report along with balance sheet, where applicable)

 

7.

Annual turnover of the sponsor during the past three years

 

8.

Annual Research and Development expenditure of the sponsor during the three years

 

9.

Details of deduction claimed (year-wise) by the sponsor under section 35(2AA) of the Income-tax Act, 1961 during the last eight years

 

10.

Purpose of the Scientific Research Programme [Give a brief write up on the requirement of research programme indicating the objectives of the programme, stages of implementation, expected results, commercialization prospects, usefulness of the programme in terms of foreign exchange saving and potential for exports (in separate annexure)]

 

11.

Date of commencement of the research programme

 

12.

Duration of the programme in months

 

13.

Total cost of the programme (cost of raw materials, equipment, manpower, services, indirect costs, overheads and intellectual inputs)

 

14.

Payment terms (enclose copy of the agreement between the sponsor and the National Laboratory, University, Indian Institute of Technology or specified person)

 

15.

Details of agreement regarding patent rights and commercialization rights between the sponsor and the National Laboratory, University, Indian Institute of Technology or specified person (enclose copy of the agreement)

Certified that the above information is true to the best of our knowledge and belief.

We undertake to:

    (i)    maintain separate accounts for the programme approved;

    (ii)    submit progress reports every year to the Director General (Income-tax Exemptions); and

    (iii)    submit final report on completion of the programme along with audited statement of accounts to the Director General of Income-tax (Exemptions).

Place :

Date :

(Signature)

(Name and Designation)

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