I am freelancer software developer and recently sold my software with following facts :
1). The "web browser addon" was open-source and Free for end-users.
2). The US company paid money for my loyal user-base.
3). The "web browser addon" was earning me regular income since past 4-5 years by voluntary donations (by Paypal) and advertising revenues.
My question is can I save indian income tax under "royalties" or any other scheme as I earned valuable foreign currency for my country. It is to be noted that the company did not paid for the software as it was pretty basic and open-source, they paid for my huge user-base.
Menu
Weird tax liability situation ?
Replies (18)
Anybody ?
I Think U Can Done It By Declare Urself As Nri And
For Other Deductions Reffer Sec 80QQA Of It Act 1961
Hun....how can I declare myself as NRI, if I am not ?
For NRI U Leave The INDIA For More Than 182 Days In Previous Year
In Case Of Royalities
Get the Deduction Of rs 3 Lakh Subject to Received a Certificate In form No 10CCD From the Payer
It Is Not Deposited With ITR But represent On the Department 's Demand
Form No. 10CCD
Download From Following Link
https://law.incometaxindia.gov.in/DITTaxmann/IncomeTaxRules/pdf/itr62Form10CCD.pdf
| Originally posted by : vikas Agarwal | ||
 |
Form No. 10CCD Download From Following Link https://law.incometaxindia.gov.in/DITTaxmann/IncomeTaxRules/pdf/itr62Form10CCD.pdf |
 |
But mine is not a book ??
When We Talk About Royalty The Scope Of Sec 80QQB Covered The Following
Author Oo the Book at Litreary,artistic Or Scientific Nature
Scientific Nature Covered any Computer Programme forming Part of the software
Reffer to the case of DASSAULT SYSTEM K.K 2010 New dDelhi
Since,
1). I was not selling anything,
2). have not provided any service to the user or buyer
3). and was earning a regular monthly income since past 4 years
can't we get this into capital gains/asset sale ?
Mr Vikas Agarwal,
Sory but onething you not that Section 80QQB applicable to only author not to other and also in respect of Book.
Income Tax Act Language is -
"Lump sump Consideration for assignment or
grant, royalty or copyright fee for Copyright of any book being a work of literary, artistic, or scientific nature ....."
Conclution:- thats mean this section applicable only in respect of BOOK only.
shalini mam,
I think its in my view, no any exemption, deduction and scheme for such case but still i am search so as to reduce tax liability as far as possible, if i got then inform to you.
Thank you
How Can U Earn Someting Regularely Without Selling, Providing Services,Or Deposited as Investment
| Originally posted by : vikas Agarwal | ||
|
|
How Can U Earn Someting Regularely Without Selling, Providing Services,Or Deposited as Investment |
|
That's the beauty :) , just like "royalty" a book writer or a scientist receives. I devloped a solution and earn money by offering sponsorship leaving the solution free :
1). I did not provided service to end-user.
2). I did not sold anything to end-user.
But since this was a running business earnibngg money "just like one receives in royalty" I am not sure how to get tax-palnning done for this ?
Never Treated As Capital Gain
Related Topics
CAclubindia
