Section 80QQB is about the deduction in respect of royalty
income of authors. This deduction is entitled by the individual fulfilling the
two conditions which are as under.
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The individual must be a resident of India.
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An author or joint author of books being a work
of literacy, artistic or scientific nature.
Computation of profits for deduction
Where the income(before allowing expenses attributable to
such income) by way of royalty on books or the copyright fee(not a lump sum
consideration in lieu of all rights to the assessee in the book) exceeds 15% of
the value of such books sold during the previous year shall be ignored.
Quantum of deduction
Whole of such income (royalty maximum at 15% of the value of
such books sold less expenses attributed top such income) or three lakhs
rupees, whichever is earlier?
Where the assessee receives lump sum consideration for the
assignment or grant of any of his interest in the copy right of a book, the
quantum of deduction shall be the whole of such income (after deducting
expenses) or three lakhs rupees whichever less is.
If the income is earned outside India, so much of the income
shall be taken into account for the purpose of deduction as it brought into India
by, on or behalf of, the assessee is convertible foreign exchange within six
months from the end of the previous year or within the period extended by the
competent authority.
Conditions for deduction
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The assessee must furnish a certificate in the
prescribed form duly verified by the person responsible for making such payment
to the assessee, along with the return of income.
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If the income is earned outside India, the
assessee must furnish a certificate in the prescribed form from the prescribed
authority along with the return of income.
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