Rule 71: Form 37 patent royalty certificate
Rule 71 identifies the authority and form for the section 152(5) patent-royalty deduction certificate. The prescribed authority is the Controller referred to in the Patents Act, 1970.
Official notified Income-tax Rules, 2026Need advice on Rule 71?
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Rule 71 - Prescribed authority and form of certificate to be furnished under section 152(5)
For the purposes of section 152(5),– (a) the prescribed authority shall be the Controller referred to in section 2(1)(b) of the Patents Act, 1970 (39 of 1970); and (b) the assessee shall be required to furnish a certificate in Form No. 37 from the prescribed authority along with the return of income.
Rule breakdown
Confirm the section 152 claim
The parent section governs the qualifying patent-royalty deduction and its taxpayer, income and other conditions. Rule 71 supplies the authority and certificate form.
Keep the patent and royalty records supporting the actual claim; the form requirement does not determine the entire eligibility analysis.
Obtain the certificate from the prescribed Controller
The authority is the Controller referred to in section 2(1)(b) of the Patents Act, 1970. Obtain the prescribed certificate from that authority.
A payer’s statement or an adviser’s letter should not be assumed to replace the authority specified here.
Furnish Form 37 with the return
The prescribed certificate is Form No. 37 and is required along with the return of income. Confirm the current official procedure and retain the certificate and filing evidence.
Reconcile patent particulars and royalty information with the deduction computation and return.
Check additional foreign-source conditions
Where income is earned from a source outside India, the separate certificate requirement in section 152(6) and Rule 72 must also be considered.
Do not treat Form 37 as replacing every other document required for the deduction or foreign-source income.
Key takeaways
Controller is prescribed
Use the Patents Act authority identified by the rule.
Form 37
The certificate is furnished along with the return.
Other conditions remain
Check parent eligibility and any foreign-source documentation.
Practical checklist
- Keep patent and royalty evidence aligned with the claim.
- Obtain Form 37 from the prescribed authority.
- Check separate foreign-source requirements where relevant.
Avoid
- Do not substitute an unrelated certificate for the prescribed authority’s form.
- Do not assume filing establishes every deduction condition.
FAQs
Who is the prescribed authority?
The Controller referred to in section 2(1)(b) of the Patents Act, 1970.
Which form is prescribed?
Form No. 37.
Does a payer certificate automatically replace it?
No. Rule 71 identifies a particular authority and form.
Glossary
- Controller
- The prescribed authority identified by reference to the Patents Act, 1970.
- Form 37
- The certificate form required by Rule 71 for section 152(5).