Through a notification on 31 March, the Central Board of Direct Taxes (CBDT) introduced changes to the patent box regime. The CBDT notified rule 5G of the Income Tax Rules, 1962, and form 3CFA under section 115BBF of the Income Tax Act, 1961. Rule 5G states that those who qualify as an “eligible assessee” opting for the concessional taxation regime under section 115BBF in respect of a patent developed and registered in India must submit a digitally signed form 3CFA.
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The details of the eligible assessee and “eligible patent” would need to be provided in the form. Such details would include a description of the patent, the date on which the patent was granted and whether the patent was granted to single persons. The form also seeks details of royalty income from the eligible patent and expenditure incurred on the patent in and outside India.
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