1. Applicability: Resident individual being an author.
2. Source of income: Any lump sum consideration for the assignment or grant of any of his interests in the copyright of any book being a work of literary, artistic or scientific nature for royalty or copyright fees.
3. Amount of deduction: Least of the following-
- Whole of such income or
- Rs.300000
4. Other conditions in computation of income:
- Royalty not received in lump sum: If Royalty or copyright fee not received in lump sum then amount in excess of 15% of value of such books sold during the previous year shall be ignored.
- Income earned outside India:
- Remittance to India: Should be remitted within 6 months from the end of relevant previous year or within such extended time by RBI.
- Certificate of prescribed authority: For income earned outside India a certificate from prescribed authority in Form 10H should be submitted with the return of income.
- Certificate from payer: The assessee shall furnish a certificate in the Form 10CCD from the person responsible for making such payment along with the return of income.
- No other deductions: No other deductions shall be allowed under any other provision of this Act in respect of such income.
- Excluded Books: Books does not include brochures, commentaries, diaries, guides, journals, magazines, newspapers, pamphlets, text books for schools, tracts and other publications of similar nature.
