Patent royalty tax: separate fixed-rate tax on royalty income and disallowance of deductions for resident patentees. A special tax regime requires a resident patentee's patent royalty income arising from patents developed and registered in India to be taxed by aggregating a separate tax on the royalty at a fixed rate with the tax on the assessor's remaining income after excluding that royalty, while expressly disallowing any deduction or allowance in computing the royalty component; the section also defines key terms such as eligible assessee, developed, royalty, lump sum, patentee, and true and first inventor.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Patent royalty tax: separate fixed-rate tax on royalty income and disallowance of deductions for resident patentees.
A special tax regime requires a resident patentee's patent royalty income arising from patents developed and registered in India to be taxed by aggregating a separate tax on the royalty at a fixed rate with the tax on the assessor's remaining income after excluding that royalty, while expressly disallowing any deduction or allowance in computing the royalty component; the section also defines key terms such as eligible assessee, developed, royalty, lump sum, patentee, and true and first inventor.
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