Deduction available to an owner of a patent in respect of royalty income from patents (Section 80RRB)

1. Applicability: Resident individual being a patentee in receipt of any income by way of royalty in respect of a patent registered on or after 1-4-2003 under the Patents Act, 1970.

2. Amount of deduction: Least of the following-

1. Whole of such income or
2. Rs.300000

3. Other Conditions:

1. Income earned outside India:
   1. Remittance to India: Should be remitted within 6 months from the end of relevant previous year or within such extended time by RBI.
   2. Certificate of prescribed authority: For Income earned outside India a certificate from the prescribed authority in Form29H should be submitted with the return of income.
2. Certificate from payer: The assessee shall furnish a certificate in the Form 10CCE from the person responsible for making such payment along with return of income.

No other deduction: No other deductions shall be allowed under any

1. Other provision of this Act in respect of such income.