[Section 80QQB]: Deduction in respect of Royalty Income of Authors – to what extent available !

The following Conditions should be Satisfied in order to claim Deduction under Section 80QQB in respect of Royalty income of Authors.

Essential conditions for claiming deduction under this section 80QQB :

(1)        The deduction is available to an individual who is resident in India and is an author of a book.

(2)        The book should be a work of literary, artistic or scientific nature.

(3)        The income must be derived by him in the exercise of his profession.

(4)        The income must be either:

(a)        on account of any lump sum consideration for the assignment or grant of any of his interests in the copyright of such book, or

(b) of royalty or copyright fees (whether receivable in lump sum or otherwise).

Quantum of Deduction U/s 80QQB :

100% of such income or Rs.3,00,000, whichever is less.

However, 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, then such royalty, etc., before allowing expenses, in excess of 15% of the value of such books sold during the previous year, shall be ignored.

Further, where any income is earned from any source outside India, only 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.

Certificates to be Furnished:

(1)        No deduction under this section shall be allowed unless the assessee furnishes a certificate in the prescribed form (Form No. 10CCD) arid in the prescribed manner, duly verified by any person responsible for making such payment to the assessee, along with the return of income, setting forth such particulars as may be prescribed.

(2)        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 (Form No. 10H) from the prescribed authority, along with the return of income in the prescribed manner.

No Double Deduction:

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 the Act in any assessment year.