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Deduction In respect of Royalty Income, Etc., of Authors of Certain Books other than Text-Books [Section 80-QQB]

  1. Essential Conditions for Claiming Deduction under this Section 80QQB :

  2. Amount of Deductin under Section 80QQB

  3. No Double Deduction be Allowed :

  4. Remittance from Abroad -

  5. Rate of Royalty not to exceed 15% -

The Provisions of Section 80QQB are given below : -

(A) Essential Conditions for Claiming Deduction under this Section 80QQB :

  1. Resident individual -

  2. The taxpayer is an individual resident in India. He may be an Indian citizen or foreign citizen. He may be resident and ordinarily resident or resident but not ordinarily resident. But he should not be a non-resident in India.

  3. Author or joint author -

  4. He is an author or joint author.

  5. Literary work -

  6. The book authored by him is work of literary, artistic or scientific nature. However, the “books” shall not include brochures, commentaries, diaries, guides, journals, magazines, newspapers, pamphlets, textbooks for schools, tracts and other publications of similar nature, by whatever name called.

  7. Income includes Royalty -

  8. The gross total income of the taxpayer includes the following—

    1. royalty or copyright fees (payable in lump sum or otherwise) in respect of aforesaid book (it also includes advance payment which is not returnable); and

    2. lump sum consideration for transfer (or grant) of any interest in the copyright of the book.

  9. Furnishing of Form No. 10CCD -

  10. The taxpayer shall have to obtain a certificate in Form No. 10CCD from the person responsible for paying the income and furnish it electronically along with the return.

  11. Return of income -

    Deduction under section 80QQB is not available unless it is claimed in the return of income.

(B) Amount of Deductin under Section 80QQB

- If the aforesaid conditions are satisfied, then the amount of deduction is—

  1. Rs. 3,00,000; or

  2. income from royalty as stated above,

    whichever is lower.

(C) No Double Deduction be Allowed :

Where a deduction under section 80QQB, for any previous year has been claimed and allowed, no deduction in respect of such income shall be allowed under any other provision of the Act in any assessment year.

(D) Remittance from Abroad -

Where the eligible income is earned outside India, the deduction shall be allowed on so much of the income earned in foreign exchange, which is brought in India within 6 months from the end of previous year (or within extended period as permitted by RBI or competent authority).

Moreover, deduction will not be allowed unless the taxpayer electronically furnishes a certificate in Form No. 10H.

(E) Rate of Royalty not to exceed 15% -

Where the income by way of royalty (or the copyright fee), is not a lump sum consideration (in lieu of all rights of the assessee in the book) so much of the income (before allowing expenses attributable to such income) as is in excess of 15% of the value of such books sold during the previous year, shall be ignored.

  1. "Author" includes a joint author;

  2. "Books" shall not include brochures, commentaries, diaries, guides, magazines, journals, newspapers, pamphlets, text books for schools, tracts and other publications of similar nature, by whatever name called;

  3. "Lump sum", in regard to royalties or copyright fees, includes an advance payment on account of such royalties or copyright fees which is not returnable.

  4. Prescribed authority shall be the Reserve Bank of India or such other authority as is authorised under any law for the time being in force for regulating payments and dealings in foreign exchange.

Deductions to be made in Computing Total Income [Sections 80A to 80U (Chapter VIA)]

Related Topics...Deductions from Gross Total Income

  1. DEDUCTIONS UNDER 'CHAPTER VI-A' IN RESPECT OF "PAYMENT & INVESTMENT" ARE ALLOWED FROM SECTION 80C TO 80GGC

    Section 80C Section 80CCC Section 80CCD
    Section 80CCG Section 80D Section 80DD
    Section 80DDB Section 80E Section 80EE
    Section 80G Section 80GG Section 80GGA
  2. DEDUCTIONS UNDER 'CHAPTER VI-A' IN RESPECT OF "INCOMES" ARE ALLOWED FROM SECTION 80-IA TO 80U

    Section 80-IA Section 80-IAB Section 80-IAC
    Section 80-IB Section 80-IBA Section 80-IC
    Section 80-ID Section 80-IE Section 80-JJA
    Section 80-JJAA Section 80-LA Section 80-P
    Section 80-PA Section 80-QQB Section 80-RRB
    Section 80-TTA Section 80-TTB Section 80-U
 

 

 
 
 
 
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