Royalty Income Definition: Compensation for intellectual property usage, subject to taxation.
Section 80QQB Deduction: Offers relief for authors earning royalty income, limited to INR 3 lakhs or actual received amount.
Eligibility Criteria: Resident Indian authors of specified works, mandatory ITR filing, and Form 10CCD submission.
Additional Conditions for Foreign Income: Repatriation of earnings within specified timeframe and Form 10H requirement.
Exceptions: Royalties from specific publications or non-repatriated foreign earnings may not qualify.
Form 10CCD Submission: Required for claiming deduction under section 80QQB.
Examples:
Scenario 1: Mrs. Arundhati claims full deduction for royalty income below INR 3 lakhs.
Scenario 2: Mr. Amish claims deduction up to INR 3 lakhs from royalty income exceeding limit.
Scenario 3: Mr. Tapan's textbook royalty income might not qualify for deduction under section 80QQB.