Section 80 RR of Income Tax Act "Deduction in respect of professional income from foreign sources in certain cases"
80RR. Where the gross total income of an individual
resident in India, being an author, playwright, artist,
musician, actor or sportsman (including an athlete),
includes any income derived by him in the exercise of his
profession from the Government of a foreign State or any
person not resident in India, there shall be allowed, in
computing the total income of the individual, a deduction
from such income of an amount equal to-
(i) sixty per cent of such income for an assessment year
beginning on the 1st day of April, 2001;
(ii) forty-five per cent of such income for an
assessment year beginning on the 1st day of April, 2002;
(iii) thirty per cent of such income for an assessment year
beginning on the 1st day of April, 2003;
(iv) fifteen per cent of such income for an assessment year
beginning on the 1st day of April, 2004,
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 or within such
further period as the competent authority may allow in this
behalf and no deduction shall be allowed in respect of the
assessment year beginning on the 1st day of April, 2005 and
any subsequent assessment year :
Provided that no deduction under this section shall be
allowed unless the assessee furnishes a certificate, in the
prescribed form, along with the return of income, certifying
that the deduction has been correctly claimed in accordance
with the provisions of this section.
Explanation.-For the purposes of this section, the
expression "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.