Deduction in respect of Royalty Income of Authors - (New) Section 151 / (Old) Section 80QQB

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.... The deduction is available on either of the following: • on account of any lump sum consideration for • the assignment in the copyright or • grant of any of his interests in the copyright, or • of royalty or • copyright fees (whether receivable in lump sum or otherwise) • of any book being a work of • literary, • artistic or • scientific nature Quantum and Maximum Limit of Deduction [ Section 151(2) ] The deduction equals: • actual eligible income, or • Rs.3,00,000, whichever is lower. Restriction on Deduction for Excess Royalty Linked to Book Sales [ Section 151(3) ] â€....

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....mittance and Sub-section (6) deals with proof of remittance. Both conditions must be satisfied. Mandatory Certificate for Domestic Royalty Claims [ Section 151(5) ] Deduction is available only if the assessee furnishes: • prescribed certificate, • in prescribed Form No. 36, • duly verified, • by the person making payment. The certificate must accompany the return of income. Prohibition of Double Deduction [ Section 151(7) ] • If deduction has already been allowed under Section 151, • the same income cannot again receive deduction under any other provision of the Act. Meaning of Important Term   (a) "author" includes a joint auth....

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....tificate is to be verified from the person making payments to author. • The income should be earned in exercise of his profession. • Extent of Deduction: Deduction is available to the extent of Rs. 3 lacs or income received, whichever is less. • Points to be noted: • If royalty or copyright fee is not provided for complete transfer of rights of author - In such case, deduction will be "income, before allowing expenses attributable to such income, as in excess of 15 % of the value of books sold during the previous year." • If the income is earned from outside India - Only that much amount which is brought in India in convertible foreign exchange within six months from....