Deduction u/s 80QQB

[Nitika Patni]

Our Client is practising doctor by profession as well as writer of the book claiming royalty under section 80QQB. The assessing officer is not allowing deduction of royalty receipt stating reason as he is not a professional author. Request guidance and case laws if any.

[Surender Gupta]

I think the action of the AO is not correct as per law. There is no specific condition in section 80QQB that the author must be a professional author. If you satisfy all other conditions of this section, you are eligible for deduction.

[Guest]

There is no definition of professional author given in the act,in general a person who has written a book and is getting royalty for the same is a professional author

[DEV KUMAR KOTHARI]

Requirements are 'being an author' and book writing should be 'in exercise of his profession'. A CA is a CA by his profession. A doctor is a doctor by his profession. A teacher is teacher by his profession.They may write book as a CA, a doctor or as a teacher/ professor. Book writing as such is not an independent profession. Book writing is one of activity which a professional person can take as a major or minor activity. On writing a book the original professio is not snatched away and it is not said that he is no longer a CA a doctor or a teacher.Before or after name of author also CA, DR., Professor or advocate etc. are written. Author remember well known authors professor K.B.Saxena and Prof. R.C Agarwal who have written several books for B.com and M.Com courses. They were always recognised as professors, and before name, even on books authored by them they used to write professor K.B.Saxena and Professor R.C.Agarwal It was not that after writing a book. Let us hope that the A.O. will be convinced by these reasonings. Therefore, books authored in exercise of profession will be eligible for deduction. Therefore if a doctor writes a book on subjects of his profession of doctor, or a CA writes books on subjects of his profession, then subject to other conditions being fullfilled, deduction shall be admissible. If a doctor writes a book on local cultural practices or literateur then royalty or lump sum received for such book may not be eligeble, because such book is not in exercise of his profession as doctor.

AI Summary

Author royalties deduction: entitlement requires that royalties arise from a book written in the exercise of the taxpayer's profession. Deduction for author royalties under section 80QQB requires that the taxpayer be an author and that the book be written in the exercise of his profession; there is no independent requirement to be a 'professional author.' Royalties for books whose subject matter relates to the taxpayer's professional practice qualify, while royalties for works unrelated to the profession will not.