As the saying goes “ A writer is someone for whom writing is more difficult than other people”. Writing is an art. They always inspire us by their books, articles, quotes and many more. These days there are so many platforms for writers/authors to showcase their talent. They practice, pen them and publish books through many mediums like media firms, major publishers, technology etc. and get rewarded financially. The type of reward earned through sales or profit is called Royalty Income of authors. This guide covers the tax deductions available under section 80QQB.
The professional income earned by authors is by publishing their books. The publishers publish their books and a certain amount of sales or profit is paid to the authors as compensation for the work. This income is called Royalty Income. The Income Tax Department (ITD) charges tax on Royalty income as well. But there are deductions, that can be claimed by the author to save tax. These deductions are covered under section 80QQB of Income Tax Act, 1961.
Mr. Ravi is very passionate about writing. He is a resident of India and a recognised author who publishes books based on scientific facts. He earns Rs. 2,25,000 as his royalty income and he has a business where his profits are Rs. 5,00,000 p.a. Calculate his net income.
|Income from Profits and Gains of Business Profession (PGBP)
|Gross total income||7,25,000/-|
To know how to utilize the tax saving options available to you and for better tax saving and planning options, consult your personal tax expert at H&R Block India.