Deduction for Royalty income

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 (excluding textbooks), allowing them to claim a deduction on royalty income.
  • Section 80RRB: Offers a deduction for individuals earning royalty from patents registered under the Patents Act, 1970.

Steps to Claim Deduction for Royalty Income

  1. Navigate to File > Deductions
  2. Select Section 80QQB or 80RRB cardSelect Section 80QQB or 80RRB card
  3. The deduction will be auto-calculated based on the income entered under Other Incomes

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