Add Royalty Income

Add Royalty Income

Royalty income refers to the earnings received when someone pays you for the right to use your intellectual property—such as a patent, copyright, or natural resource. For instance, when authors allow publishers to sell their books, they receive a share of the profits, known as a royalty.

Royalty income is taxed either as business income or income from other sources, depending on the nature and intent of the taxpayer's activities. If it's not part of a regular business or profession, it is generally reported under the head "Income from Other Sources."

Things to keep in Mind:

If you’re opting for the old tax regime, you may be eligible to claim deductions for royalty income under:
  • Section 80QQB – for royalty received by authors of certain books
  • Section 80RRB – for royalty received from patents

These deductions help reduce your taxable income and lower your overall tax liability.

Web
Mobile
Web

Steps to add Royalty income


  1. Navigate to File > Incomes > Other Incomes, then click Any Other

  2. Enter the Royalty Income earned from patents and booksEnter the Royalty Income earned from patents and books

Mobile

Steps to add Royalty income


  1. Navigate to File > Incomes > Other Incomes, then click Any Other


  2. Enter the Royalty Income earned from patents and books


 

Need Help?

Raise a ticket to get in touch with us


    • Related Articles

    • Deduction for Royalty income

      Royalty income is earned when someone pays to use your intellectual property, such as books or patents. The Income Tax Act provides specific deductions for such income to support innovation and creativity. Section 80QQB: Available to authors of books ...
    • Add Dividend Income

      Companies distribute dividends to their shareholders as a share of their profits. The amount received depends on the number of shares held by the investor. For tax purposes, dividend income is classified under the head "Income from Other Sources." ...
    • Add Foreign Business Income

      If you operate a business outside India, income earned from such foreign operations must be reported in respective schedules. Steps to Add Foreign Sole Proprietorship Income Add Business Details Navigate to File > Business & Profession > Add Business ...
    • Add Foreign Salary Income

      If you were employed by a foreign company while residing abroad during the financial year—such salary income must be reported. Steps to add foreign salary income manually: Navigate to File > Incomes > Salary Select Add Manually and click Proceed ...
    • Add Salary Income

      For most taxpayers in India, salary is the primary source of income. It comprises various components such as basic pay, allowances, bonuses, and more—all of which need to be accurately reported while filing your tax return. Understanding these ...