Section 80 QQB of Income Tax Act "Deduction in respect of royalty income, etc., of authors of certain books other than text-books"
80QQB. (1) Where, in the case of an individual resident in India, being an author, the gross total income includes any income, derived by him in the exercise of his profession, on account of any lump sum consideration for the assignment or grant of any of his interests in the copyright of any book being a work of literary, artistic or scientific nature, or of royalty or copyright fees (whether receivable in lump sum or otherwise) in respect of such book, there shall, in accordance with and subject to the provisions of this section, be allowed, in computing the total income of the assessee, a deduction from such income, computed in the manner specified in sub-section (2).
(2) The deduction under this section shall be equal to
the whole of such income referred to in sub-section (1), or
an amount of three lakh rupees, whichever is less:
Provided that where the income by way of such 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 fifteen per cent of the value of
such books sold during the previous year shall be ignored :
Provided further that in respect of any income earned from
any source outside India, so much of the income shall be
taken into account for the purpose of this section as is
brought into India by, or on behalf of, the assessee in
convertible foreign exchange within a period of six months
from the end of the previous year in which such income is
earned or within such further period as the competent
authority may allow in this behalf.
(3) No deduction under this section shall be allowed unless
the assessee furnishes a certificate in the prescribed form
and in the prescribed manner, duly verified by any person
responsible for making such payment to the assessee as
referred to in sub-section (1), along with the return of
income, setting forth such particulars as may be prescribed.
(4) No deduction under this section shall be allowed in
respect of any income earned from any source outside India,
unless the assessee furnishes a certificate, in the
prescribed form from the prescribed authority, along with
the return of income in the prescribed manner.
(5) Where a deduction for any previous year has been claimed
and allowed in respect of any income referred to in this
section, no deduction in respect of such income shall be
allowed under any other provision of this Act in any
assessment year.
Explanation.-For the purposes of this section,-
(a) "author" includes a joint author;
(b) "books" shall not include brochures, commentaries,
diaries, guides, journals, magazines, newspapers, pamphlets,
text-books for schools, tracts and other publications of
similar nature, by whatever name called;
(c) "competent authority" means 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;
(d) "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.