Section 80QQB: Deduction for Royalty Income of Authors
CA Meet Dhrangadhariya 
May 14, 2025
CA Meet Dhrangadhariya May 14, 2025
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Last updated: 24 September 2026 · Written and reviewed by CA Meet Dhrangadhariya, CSM & Co LLP
Quick summary
An author who earns royalty from books gets a deduction under section 80QQB, up to ₹3,00,000 a year. From Tax Year 2026-27 the provision is section 151 of the Income-tax Act, 2025. For FY 2025-26 (assessment year 2026-27) it is still section 80QQB of the 1961 Act.
When an author gives a book to a publisher, the publisher pays a share of sales or profit as royalty. The section covers income derived by an author in the exercise of the profession of writing:
A lump sum includes an advance on royalty or copyright fees that is not returnable. A joint author is treated as an author.
An individual who is an author resident in India. HUFs, companies and non-residents cannot claim it.
The lower of:
If the income is royalty rather than a lump sum for all rights in the book, then the part of income (before expenses) that exceeds 15% of the value of the books sold in the year is ignored for this deduction.
The word “books” does not include brochures, commentaries, diaries, guides, journals, magazines, newspapers, pamphlets, text-books for schools, tracts and other publications of a similar nature.
Income from a source outside India qualifies only to the extent it is brought into India in convertible foreign exchange within six months from the end of the tax year in which it is earned, or within any further period the Reserve Bank of India or other competent authority allows. The author also has to furnish a certificate from the RBI or other authorised authority with the return.
If a deduction has been allowed for a year on this income, the same income cannot be deducted under any other provision of the Act in any year.
The deduction is not allowed in the new tax regime. Section 202 of the 2025 Act (the new regime) disallows Chapter VIII deductions other than sections 124(1), 124(2), 125(2) and 146.
An author with some business income. Komal is a resident author. She earns ₹5,50,000 in royalty (not a lump sum for all rights, and below 15% of the value of books sold) and has other business profits of ₹2,00,000.
| Item | Amount in ₹ |
|---|---|
| Royalty income | 5,50,000 |
| Other business profit | 2,00,000 |
| Gross total income | 7,50,000 |
| Deduction under section 80QQB (lower of 5,50,000 and 3,00,000) | 3,00,000 |
| Total income | 4,50,000 |
Foreign royalty and the six month rule. Ravi is a resident author. In FY 2024-25 he earns ₹6,00,000 as royalty from a UK publisher and receives it in India in convertible foreign exchange on 31 October 2024. The six months run from the end of the tax year, that is 31 March 2025, so the deadline is 30 September 2025 and he received it in time. The ₹6,00,000 counts, and he can claim ₹3,00,000, provided he files the RBI or authorised authority certificate with the return. If the money had come in after 30 September 2025, with no further extension, none of it would have qualified.
An individual author resident in India whose income includes lump sum consideration for assigning copyright in a book, or royalty or copyright fees, earned in the exercise of the profession of an author. A joint author can claim.
The lower of the royalty income and ₹3,00,000 in a year.
Brochures, commentaries, diaries, guides, journals, magazines, newspapers, pamphlets, text-books for schools, tracts and similar publications.
It counts only to the extent it is brought into India in convertible foreign exchange within 6 months from the end of the year in which it is earned, or a further period allowed by the RBI or competent authority, and a certificate in Form 38 must be filed.
No. It is available only in the old tax regime.
This article is for general informational purposes only and should not be considered professional advice. Please consult a qualified expert for advice tailored to your specific situation. The author and website owner are not liable for any errors or actions based on this content.
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