The Department of Scientific & Industrial Research (DSIR) has released updated guidelines (June 2025) for recognition and registration of R&D units and organizations.
1. In-House R&D Units (RDI Scheme)
- Applicable to companies registered under the Companies Act, 1956/2013.
- R&D area must be minimum 1,000 sq.ft with dedicated manpower and infrastructure.
- Activities should focus on innovation and technology development, not routine testing or production.
- Applications and renewals are accepted only in soft copy (single PDF ≤ 20 MB).
- Recognition enables eligibility for government funding and fiscal incentives.
2. Scientific & Industrial Research Organisations (SIRO)
- Open to non-commercial entities such as trusts, societies, and Section 8 companies.
- Must have a Governing Council, Research Advisory Committee, and full-time R&D personnel.
- Recognized SIROs are eligible for customs and excise duty exemptions on research equipment.
3. Fiscal Incentives (Section 35(2AB))
- Companies with DSIR-recognised R&D units can claim weighted tax deduction on R&D expenditure.
- Latest clarification (Sept 2025) covers filings under Form 3CK/3CL for companies opting for the lower tax regime.
4. Key Updates
- Revised RDI & SIRO Guidelines (June 2025) now specify clearer infrastructure norms and streamlined online submission.
- Renewal applications to be filed at least three months before expiry.
- All guidelines and formats are available on http://www.dsir.gov.in.