R&D / agricultural extension / skill development (range 29–40)

Applying (sub-rules 1 and 2). An affordable housing project applies in Form No. 18; a semiconductor wafer fabrication manufacturing unit in Form No. 19, both to the Board. If there is a defect or a missing document a deficiency letter may be served; the applicant removes it within one month from the end of the month it is served, failing which the Board, if satisfied, may treat the application as invalid. The Board may call for details from the applicant, income-tax authorities, other Departments or agencies, and may notify the approval or reject the application with written reasons. It may withdraw approval if the assessee has ceased the specified business, its activities are not genuine or not carried out per section 46 or this rule, or — for a unit — if the approval under the Modified Special Incentive Package Scheme has been withdrawn. A hearing is given before any adverse order, with a copy to the applicant, Assessing Officer and Commissioner.

Books and returns (sub-rule 3). The applicant keeps separate books with complete details of all capital expenditure for the tax year in which the deduction is claimed, and files the returns by the due date to claim the benefit.

Affordable housing project conditions (sub-rule 5).

• Prior sanction of the competent authority under the Scheme of Affordable Housing in Partnership of the Ministry of Housing and Urban Affairs.
• Commencement of operations on or after 1 April 2011.
• A plot of at least one acre, with affordable units forming at least 30% of the total allocable rentable area for the Economically Weaker Section (EWS), at least 60% for EWS and Lower Income Group (LIG) together, and at least 90% for EWS, LIG and Middle Income Group (MIG) together; the remaining 10% or less may be other residential or commercial units.
• Design, layout and specifications approved by the State Government, Union territory Administration or its designated agency.
• Completion within five years from the end of the tax year in which the project is sanctioned.

Semiconductor wafer fabrication unit conditions (sub-rule 6). Exclusively for semiconductor wafer fabrication; prior approval of the competent authority on the recommendations of the Appraisal Committee under the Modified Special Incentive Package Scheme; commercial production commencing on or after 1 April 2014; and all manufacturing facilities located in India.

Definitions (sub-rules 7 and 8). Sub-rule (7) defines the unit size categories by rentable area, with separate limits for "specified cities" and other cities, and defines "housing unit", "rentable area" (by reference to IS 3861:2002) and "total allocable rentable area". Sub-rule (8) defines "competent authority", "date of commencement of operations", "semi-conductor wafer fabrications" (National Industrial Classification, 2008, Division 26, Group 261, Class 2610, Sub-class 26103) and "unit". The rentable-area limits and the list of specified cities are in sub-rule (7) of the Rules.