In case the assessee is an author of a certain specified category of books (other than text books) and receives royalty on these, he can avail a deduction against the same. This deduction will subject to the following conditions.

  • Author includes ‘Joint Author’
  • Books shall not include the following –
  • Brochures
  • Commentaries
  • Diaries
  • Guides
  • Journals
  • Pamphlets
  • Newspapers
  • Magazines
  • Text books for schools
  • Tracts and other publications of similar nature.
  • The book must be work of literary, scientific or artistic nature.
  • Deductions may be allowed on the lower of the following
  • In case of lump sum payment of royalty – Rs. 300,000
  • In other cases – amount from such income is subject to a maximum of 15% of value of books sold during the year.
  • Deductions are not allowed unless the assessee furnished a certificate in the prescribed form (Form 10CCD, Form 10H) which is also verified by the person making such a payment.