Query on section 80qqb

Tax queries 538 views 3 replies

Lokesh Bahl

CA Practice

72 Points Joined July 2015

Dear friends

I came across this section 80QQB few times but never got a crystal clear advice on this, I hope you can make me understand this subject section better and answer to my below queries.

Income from Royalty comes Under “Income from other sources” or “Income from Business & Profession”
Will your answer be same if the Author is

only deriving income from Royalty, or
he is in an salaried professional and also has royalty income, so he earns salary as well as royalty income

I saw in few articles that 80 QQB is one time deduction, is it right? Or this deduction can be taken year on year.
In case if it is considered as income under the head “ Business & profession” will the author get deduction U/S 80QQB as well as deduction for expenses like, printing, stationery, electricity expenses, driver salary, petrol expenses etc., in other words all expenses which we debit to P&L account in case of business and profession.

Best regards

CA Lokesh Bahl

Replies (3)

CA Chandra Prakash

9873059766 Increasing knowledge through

296 Points Joined January 2011

Sec. 80QQB provides where in the case of an individual resident in India, being an author, the GTI includes any income, derived by him in the exercise of his profession.

CA Chandra Prakash

9873059766 Increasing knowledge through

296 Points Joined January 2011

1). Royalty is an income from profession. 2). Answer will remain same where the assessee has other income sources as well. 3). 80QQB is not a one time deduction as it is reduced from the amount of royalty received, if royalty is received every year then deduction will be allowed every year. however, it is a one time deduction when royalty is received in lump sum in lieu of all rights of the author in the book as in this case no further royalty is receivable. 4). Expenditure for earning royalty will be allowed from royalty income.

Lokesh Bahl

CA Practice

72 Points Joined July 2015

Originally posted by : chander
	1). Royalty is an income from profession. 2). Answer will remain same where the assessee has other income sources as well. 3). 80QQB is not a one time deduction as it is reduced from the amount of royalty received, if royalty is received every year then deduction will be allowed every year. however, it is a one time deduction when royalty is received in lump sum in lieu of all rights of the author in the book as in this case no further royalty is receivable. 4). Expenditure for earning royalty will be allowed from royalty income.

Thank you very much Mr. Chander for your valuable inputs, so it means expenses like driver salary, petrol, Electricity, telephone, printing & stationery, depreciation etc will be allowed to be deducted from Royalty income (including deduction U/S 80qqb), and tax will be paid on residual amount.