Deduction in respect of royalty income, etc., of authors of certain books other than text-books
[Section-151 as per the Income Tax Act, 2025 (this Act) w.e.f. 1st April, 2026.]
Section 151(1) of Income Tax Act 2025
151(1) Where, in the case of an individual resident in India, being an author, the gross total income includes any income, derived by him in the exercise of his profession, on account of 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, or of royalty or copyright fees (whether receivable in lump sum or otherwise) in respect of such book, there shall, as per and subject to the provisions of this section, be allowed, in computing the total income of the assessee, a deduction from such income, computed in the manner specified in sub-section (2).
Section 151(5) of Income Tax Act 2025
151(2) The deduction under this section shall be equal to the whole of such income referred to in sub-section (1), or an amount of three lakh rupees, whichever is less.
Section 151(3) of Income Tax Act 2025
151(3) Where the income by way of such royalty or the copyright fee, is not a lump sum consideration in lieu of all rights of the assessee in the book, so much of the income, before allowing expenses attributable to such income, as is in excess of 15% of the value of such books sold during the tax year shall be ignored.
Section 151(4) of Income Tax Act 2025
151(4) In respect of any income earned from any source outside India, so much of the income shall be taken into account for the purpose of this section as is brought into India by, or on behalf of, the assessee in convertible foreign exchange within six months from the end of the tax year in which such income is earned or within such further period as the competent authority may allow in this behalf.
Section 151(5) of Income Tax Act 2025
151(5) Deduction under this section shall not be allowed unless the assessee furnishes a certificate in such form and manner, as prescribed, duly verified by any person responsible for making such payment to the assessee as referred to in sub-section (1), along with the return of income, setting forth such particulars, as prescribed.
Section 151(6) of Income Tax Act 2025
151(6) Deduction under this section shall not be allowed in respect of any income earned from any source outside India, unless the assessee furnishes a certificate, in the prescribed form from the prescribed authority, along with the return of income in the prescribed manner.
Section 151(7) of Income Tax Act 2025
151(7) Where a deduction for any tax year has been claimed and allowed in respect of any income referred to in this section, no deduction in respect of such income shall be allowed under any other provision of this Act in any tax year.
Section 151(8) of Income Tax Act 2025
151(8) In this section,—
- (a) “author” includes a joint author;
- (b) “books” shall not include brochures, commentaries, diaries, guides, journals, magazines, newspapers, pamphlets, text-books for schools, tracts and other publications of similar nature, by whatever name called;
- (c) “competent authority” means the Reserve Bank of India or such other authority as is authorised under any law in force for regulating payments and dealings in foreign exchange; and
- (d) “lump sum”, in regard to royalties or copyright fees, includes an advance payment on account of such royalties or copyright fees which is not returnable.
FAQs on Section 151 of Income Tax Act 2025
Who is eligible for deduction under Section 151 of the Income Tax Act, 2025?
An individual who is a resident in India and earns royalty or copyright income from literary, artistic, or scientific books (excluding text-books and similar publications) is eligible.
What kind of income qualifies for deduction under this section?
Income received as lump sum or royalty/copyright fees for assignment or grant of interest in the copyright of a qualifying book.
How much deduction is allowed under this section?
The deduction is the lower of the actual qualifying income or ₹3,00,000.
Is there any restriction on non-lump sum royalty income?
Yes. If the income is not a lump sum against full rights in the book, then only up to 15% of the value of books sold during the tax year is considered; income beyond that is ignored.
What about royalty income from foreign sources?
Only the portion of foreign income that is brought into India in convertible foreign exchange within six months from the end of the tax year (or further time as allowed by the competent authority) qualifies.
What documents are required to claim this deduction?
The assessee must submit a certificate (in prescribed form and manner) from the person making the payment, along with the return of income.
Are there additional requirements for foreign income?
Yes. A separate certificate from the prescribed authority in the prescribed form and manner must be submitted for foreign source income.
Can an assessee claim this deduction under any other section too?
No. If a deduction is claimed under this section for any income, it cannot be claimed under any other provision of the Act for the same income in any tax year.
Does the term “author” include joint authors?
Yes, the definition of “author” in this section includes joint authors.
Are all types of books included for this deduction?
No. Books such as brochures, commentaries, diaries, guides, journals, magazines, newspapers, pamphlets, school text-books, tracts, and similar publications are specifically excluded.
Refresh Page