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Setting Up R&D Centers in India: Tax Benefits and Incentive Guide

Foreign companies setting up R&D in India can access 150% weighted deduction and PLI benefits. Here's the complete guide.

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Accountify Editorial Desk

Finance Expert

20 November 2022
1 min read
827 views

R&D in India: Tax Benefits That Make It Irresistible

India offers some of the most attractive R&D incentives globally, making it a preferred destination for innovation centers.

Tax Benefits

  • Section 35(2AB): 100% weighted deduction on R&D expenditure (approved facility)
  • Patent Box Regime: Concessional 10% tax on income from patents developed in India
  • Customs Exemption: Duty-free import of R&D equipment

Setting Up

Register your R&D facility with DSIR (Department of Scientific and Industrial Research). 100% FDI under automatic route. Can be set up as standalone entity or within existing subsidiary.

Where to Set Up

Bangalore (tech/biotech), Hyderabad (pharma/IT), Pune (auto/engineering), NCR (diverse). SEZ location adds additional tax benefits.

Accountify handles DSIR registration and ongoing R&D compliance. Talk to our specialists.

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Tags:

#R&D center India
#research development FDI India
#tax benefits R&D India
#innovation hub India

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