India Moves Forward on Tax Incentives for Research Firms and Refunds for Low‑Income Taxpayers

The Principal Chief Commissioner of Income Tax (Exemptions) in Delhi issued Notification No. 07/2026, approving M/s Center for Incubation Innovation Research and Consultancy (CIIRC) in Bengaluru for "Scientific Research" under section 45(3)(b) of the Income‑Tax Act, 2025. The approval applies to five tax years from 2026‑27 through 2030‑31 and is retroactive, with the memorandum stating no adverse impact on any person.

Separately, the Delhi High Court issued a notice to the Union government on a public‑interest litigation filed by Aakash Goel. The petition seeks an automatic refund mechanism for excess Tax Deducted at Source (TDS) for roughly 20 million individuals—primarily senior citizens and low‑income earners—who do not have a tax liability and are currently required to file an income‑tax return to claim refunds. The court directed the Ministry of Finance, the Department of Revenue, and the Central Board of Direct Taxes to respond, with a further hearing scheduled for 6 November.