Section 80QQB of Income Tax Act
Under Section 80QQB to allows deduction for royalty income.
The deduction is available to authors, composers, photographers, and film producers, who have literary or musical works published or communicated to the public through any medium.
The deduction available will be lower of the Rs 3,00,000 or the amount of royalty income received.
It is applicable only an Old Regime.
The following conditions are to be satisfied for income earned in India.
i). Individual claiming the deduction must be a resident in India or resident but not ordinarily resident in India.
ii). Individual must have authored or co-authored a book that falls under the category of literary, artistic or scientific work.
iii). Individual must file his income tax return to claim the deduction.
iv). If an Individual has not received a lump sum amount , 15% of the value of the books sold during the year (before allowing any expenses) should be ignored.
v). Individual must obtain FORM 10CCD from the person responsible for making the payment.
Additional requirement for Income earned outside India
Individual is allowed deduction on income earned outside India when the income is brought to India in convertible foreign exchange within 6 months from the end of the year or within the period allotted by RBI or other competent authority for this purpose. Individual must obtain a certificate in FORM 10H.
Note: Books here doesn’t include Journals, guides, newspapers, textbooks for school students, pamphlets, dairies and other publications of similar nature.