The DSIR which is the Department of Scientific and Industrial Research provides In-House R&D recognition to software product and manufacturing companiesfor new product development/ product improvement.
The DSIR recognition is aimed at flourishing the culture of research and development and innovation in India. In order to encourage the same, the recognition is associated with 150 percent weighted tax reduction on the expenses made on R&D.
Despite the recognition having monetary and other benefits, there are just 1900 companies that have the prestigious DSIR recognition so far. Now, India being one of the largest software hubs, we’d imagine most of the recognized companies to be software product companies. Right? But reality is far from that. The software companies are not even 5% of the 1900 recognized ones! This is a sorry state of affairs as software companies spend extravagant amounts on R&D or new product development and the recognition can help them save INR17 Lac on every INR1 Cr that they spend on R&D.
Having a DSIR recognition is a feat in itself and most of the giants like TATAs, Infosys & Cipla are amongst the ones with a feather in their caps. However there is no denying the fact that there needs to be some major awareness about the recognition.
So, know if you are eligible, apply and get recognized by the DSIR!
Also, don’t forget to spread the word!