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 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


 

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