Deduction for Royalty Income of Authors: Section 80QQB and Current Section 151
Resident individual authors may claim a deduction for qualifying royalty, copyright fees or specified lump-sum consideration from eligible literary, artistic or scientific books, subject to the statutory conditions and the applicable tax regime.
What is the deduction for authors' royalty income?
Under Section 151 of the Income-tax Act, 2025, an individual author resident in India can claim a deduction where gross total income includes professional income from an eligible book. The qualifying income may arise from a lump-sum consideration for assigning or granting an interest in copyright, or from royalty or copyright fees in respect of the book.
The book must be a work of a literary, artistic or scientific nature. The law also includes a joint author within the meaning of "author".
How much deduction is available?
| Point | Rule |
|---|---|
| Maximum deduction | Eligible income or Rs. 3,00,000, whichever is lower. |
| Non-lump-sum royalty | Income exceeding 15% of the value of the relevant books sold during the tax year is ignored for the deduction, before allowing expenses attributable to that income. |
| Foreign-source income | Only the qualifying amount brought into India in convertible foreign exchange within the prescribed six-month period, or an extended period allowed by the competent authority, is taken into account. |
Main conditions and limits
1. Resident individual author
The deduction is available to an individual who is an author resident in India. A joint author is included within the statutory definition of author.
2. Income must relate to an eligible book
The income must arise from copyright interests, royalty or copyright fees relating to a literary, artistic or scientific book. The exclusions listed below are not treated as "books" for this deduction.
3. Fifteen per cent restriction for certain royalties
Where royalty or copyright fees are not a lump-sum consideration in lieu of all rights of the author in the book, the amount exceeding 15% of the value of the books sold during the relevant tax year is ignored when computing the eligible deduction. The statutory test applies before expenses attributable to that income are allowed.
4. Foreign royalty must be brought into India
For income earned from a source outside India, the qualifying income must be brought into India by or on behalf of the assessee in convertible foreign exchange within six months from the end of the tax year, or within any further period permitted by the competent authority.
5. No duplicate deduction
Once deduction is claimed and allowed for qualifying income under this provision, the same income cannot again be used to obtain another deduction under the Act.
What publications are excluded?
For this deduction, "books" do not include brochures, commentaries, diaries, guides, journals, magazines, newspapers, pamphlets, school text-books, tracts and other publications of a similar nature, whatever name they may carry.
A non-returnable advance against royalty or copyright fees is included in the meaning of "lump sum". The "competent authority" for the foreign-exchange condition means the Reserve Bank of India or another authority authorised under the law regulating foreign-exchange payments and dealings.
Certificate and form requirements
For tax years governed by the Income-tax Act, 2025, the prescribed certificate for authors claiming the deduction under Section 151(5) is Form 36 under Rule 70 of the Income-tax Rules, 2026. The official Income Tax Department guidance identifies Form 36 as the successor to Form 10CCD under the earlier law.
For periods governed by Section 80QQB of the Income-tax Act, 1961, the prescribed certificate was Form 10CCD under Rule 19AC of the Income-tax Rules, 1962. The applicable certificate and return requirements should be matched to the relevant assessment or tax year.
Tax regime and Alternate Minimum Tax
Section 151 is a Chapter VIII deduction. The Income Tax Department's current guidance on Alternate Minimum Tax states that a non-corporate taxpayer claiming specified Chapter VIII-C deductions may fall within AMT provisions if the statutory conditions are met. For an individual, the official guidance illustrates Section 151 in the AMT computation where adjusted total income exceeds Rs. 20,00,000. The concessional regime under Section 202 is outside AMT.
Legacy Section 80QQB of the Income-tax Act, 1961
The earlier Section 80QQB contained substantially the same core framework: a resident individual author could claim the lower of qualifying royalty income and Rs. 3,00,000; the 15% restriction applied to specified non-lump-sum royalty; foreign income was subject to remittance in convertible foreign exchange; prescribed certificates were required; and specified publications were excluded from "books".
This page retains the Section 80QQB reference because the existing canonical URL concerns that provision and because the repealed 1961 Act continues to matter for periods governed by it. For current tax years beginning on or after 1 April 2026, readers should refer to Section 151 of the Income-tax Act, 2025 and the Income-tax Rules, 2026.
Official references
- Income Tax Department - Income-tax Act, 2025 and Rules, 2026
- Income Tax Department - FAQs and guidance on forms under the Income-tax Rules, 2026
- Income Tax Department - Form 36 FAQs for authors claiming royalty deduction
- Income Tax Department - Deductions guidance
Note: This article is a general legal and tax information resource. Eligibility depends on the applicable tax year, tax regime, nature of publication, royalty agreement, remittance facts and prescribed compliance.