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:
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Section 80QQB – for royalty received by authors of certain books
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Section 80RRB – for royalty received from patents
These deductions help reduce your taxable income and lower your overall tax liability.
Steps to add Royalty income
- Navigate to File > Incomes > Other Incomes, then click Any Other
- Enter the Royalty Income earned from patents and books
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