Royalty/ License fee.
CA M S BHATIA (40 Points)
19 June 2019
What should be head of income for Licence fees received by producer of music videos. Business or Profession or Other Sources?
CA M S BHATIA (40 Points)
19 June 2019
Suresh Thiyagarajan
(Student)
(3986 Points)
Replied 19 June 2019
1. License fee received by the composer of music if it is in the nature of royalty, that is for the song which he composed and every time the song is used he receives periodical receipts. This periodical receipt which is by nature a royalty will be taxed under the head "Income from Other sources"
2. However for making the initial composition of music which will be covered under profession, the same will be taxed under PGBP.
Please correct me if my interpretation has an alternative view.
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