Deduction in respect of royalty on patents - (New) Section 152 / (Old) Section 80RRB

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....s the true and first inventor recorded as the patentee under the Patents Act, 1970 (39 of 1970), including joint patentees recorded as such true and first inventors; • "True and first inventor" shall have the same meaning as assigned to it in section 2(1)(y) of the Patents Act, 1970 (39 of 1970). Clause (c): Royalty must arise from an Eligible Patent Royalty should relate to a patent • registered under the Patents Act, 1970, • granted on or after 1 April 2003. "Patent" means any patent granted, including a patent of addition, under the Patents Act, 1970 (39 of 1970); "Patent of addition" shall have the same meaning as assigned to it in section 2(1)(q) of the Patents Act, 1970 (39 of 1970); ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....n 2(1)(b) of the Patents Act, 1970 (39 of 1970); Royalty Earned Outside India [ Section 152(4) ] Foreign royalty is eligible only if brought into India. The amount must be remitted- • in convertible foreign exchange, • within six months from end of tax year, or within extended period permitted by the competent authority. "competent authority" means the Reserve Bank of India or such other authority as is authorised under any law in force for regulating payments and dealings in foreign exchange; Mandatory Certificate for Claiming Deduction  (a) Filing of Prescribed Certificate [ Section 152(5) and Rule 71 ] Deduction is available only if the assessee furnishes- • prescr....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....cle for commercial use. • Amount of deduction: The deduction shall be the lower of Rs. 3,00,000 or total income earned by way of royalty. • Conditions for claiming deduction: • If the income is earned outside India, the deduction shall be allowed on so much of income earned in foreign exchange which is brought in India, unless assessee furnishes a certificate, in the prescribed form (Form 10H) within six months from the end of previous year or within such extended period as allowed by RBI or other prescribed authority along with return of Income. • For availing deduction under section 80RRB a certificate in prescribed form (Form No.10CCE) along with the return of income is requir....