Tax exemption on income earned from literacy work or artistic work- 80QQB

Section 80QQB of the Income Tax Act, 1961 (“The Act”) provides deduction to a resident author (including joint authors) for the receipt of royalty or copyright for books of literacy, artistic and scientific in nature. The income should be earned in relation to his profession, on account of any consideration (whether received in lump sum or otherwise) for the assignment of any of his interest in the copyright of the book, or of royalty or copyright fees in respect of such book. Consideration also includes an advance payment of such royalty or copyright, which is not refundable. However, the term book does not includes brochures, commentaries,  guides, diaries, magazines, journals, newspaper, pamphlets, text books for schools, tracts or other publication of similar nature , by whatever name called. Amount that can be claimed as deduction The deduction shall be the lower of Rs. 300,000 or total income earned by way of royalty or copyright.

Conditions for claiming deduction:

  • If the income is earned outside India, the deduction shall be allowed on so much of income earned in foreign exchange which is brought in India within six months from the end of previous year.
  • If the consideration is not received in lump sum amount then the deduction will be limited to 15 percent of the value of such book sold before allowing any expenses.
  • For availing deduction under section 80QQB a certificate in prescribed form is required from the person responsible for making such payment.

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