Royalty income is the money earned when someone pays you to use something you own, like a patent, copyright, or natural resource. For example, when authors let publishers sell their books, the publishers share part of their profits with the authors. This shared profit is called royalty. It is taxed as either business income or income from other sources, depending on the intention of the taxpayer. Here's how to report it under Other Incomes.
You can claim deductions under section 80QQB and 80RRB for royalty income in the old tax regime.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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