Section 150 · Deductions
Section 150 of the Income-tax Act, 2025 — Deduction for Royalty Income of Authors (Old Section 80QQB): The Complete Guide
By CA Rajat Agrawal
Updated 04 Jul 2026
Chapter VIII
📜 What the law says — Section 150, Income-tax Act 2025
150. (1) If the gross total income of an assessee being a federal co-operative, in any
tax year, includes any income by way of dividends received from its investment
with any company, a deduction shall be allowed from such income, to the extent of
the amount which,—
(a) has arisen from such investment as recorded in its books of account on or
before the 31st January, 2026; and
(b) has been distributed by it to its members at least one month before the due
date for filing the return of income under section 263(1).
(2) The provisions of this section shall not apply to any tax year beginning on or after
the 1st April, 2029.
(3) For the purposes of this section, “federal co-operative” means a “federal co-opera-
tive” as defined in section 3(k) of the Multi-State Co-operative Societies Act, 2002 (39
of 2002) and notified as such by the Central Government.]
Deduction in respect of royalty income, etc., of authors of certain books other
than text-books.
In plain language
Important accuracy note — please read first. In the actual text of the Income-tax Act, 2025 (as notified and as amended by the Finance Act, 2026), the deduction for royalty income of authors — the successor to the old Section 80QQB of the Income-tax Act, 1961 — is contained in Section 151, not Section 150. Section 150 of the 2025 Act is actually a definitions clause titled "Interpretation for purposes of section 149" (it defines terms such as "consumers' co-operative society" and "primary agricultural credit society" used in the co-operative-society deduction). Because this page is about the authors' royalty deduction (old 80QQB), everything below explains that provision as it now sits in Section 151. If you specifically want the co-operative interpretation clause, that is the separate Section 150.
What this deduction means in plain English
The idea: If you are a resident individual who has written a book and you earn royalty or copyright income from it, the law lets you deduct that income from your total income — up to a ceiling of ₹3,00,000 a year. In effect, the government does not tax the first ₹3 lakh of qualifying author royalties, rewarding original literary, artistic and scientific writing.
- Old law: Section 80QQB of the Income-tax Act, 1961.
- New law: Section 151 of the Income-tax Act, 2025 (Chapter VIII — Deductions), effective 1 April 2026.
- Ceiling: Lower of actual qualifying royalty income or ₹3,00,000.
Who can claim it
- Only individuals — companies, firms, LLPs and HUFs cannot claim it.
- The individual must be resident in India (resident, or resident but not ordinarily resident). Non-residents are excluded.
- The individual must be an author or joint author of the book. Where there are joint authors, the ₹3 lakh cap applies to each author separately on their own share.
- The income must arise from a book that is a work of a literary, artistic or scientific nature.
What income qualifies — and what does not
Qualifying income is either (a) a lump-sum consideration for assigning or granting an interest in the copyright of the book, or (b) royalty/copyright fees (whether or not lump sum) in respect of such a book.
- Excluded publications: the deduction is not available for royalties from textbooks (school books), newspapers, journals, magazines, diaries, brochures, tracts, pamphlets, guides, commentaries and other publications of a similar nature.
- Textbooks for schools are specifically out — this is the most common reason claims are denied.
The key limits and conditions
- ₹3,00,000 hard cap: deduction = lower of qualifying income or ₹3 lakh, per year.
- The 15% rule (very important for ongoing royalties): if the income is not a lump sum in lieu of all rights in the book, then the royalty income (computed before deducting expenses) that exceeds 15% of the value of the books sold during the year is ignored. Note that a non-returnable advance against royalties counts as "lump sum" and escapes this 15% cut.
- Foreign royalties: where the income is earned from a source outside India, only the amount brought into India in convertible foreign exchange within 6 months from the end of the tax year (or a longer period allowed by the RBI/competent authority) qualifies.
- Certificate requirement: you must obtain and furnish a prescribed certificate (in the old regime this was Form 10CCD, signed by the person/publisher paying the royalty). For foreign income, an additional prescribed certificate from the prescribed authority is required.
- No double deduction: once income is deducted under this section, no deduction for that same income can be claimed under any other provision.
How it interacts with related sections
- Patent royalties (old 80RRB → Section 152): a parallel ₹3 lakh deduction exists for inventors earning patent royalties. An author-inventor can claim both in the same year for different income.
- Tax regime matters: like most Chapter VIA/VIII deductions, this benefit is available under the old tax regime. Taxpayers under the default new regime generally cannot claim it, so you must weigh the deduction against the lower new-regime slab rates.
Practical implications
- Keep the publisher's royalty certificate ready — you don't attach it to the return, but the Assessing Officer can call for it.
- If your book earns steady royalties (not a lump sum), model the 15% of sales value ceiling before assuming the full ₹3 lakh.
- NRIs and returning authors must plan the 6-month foreign-exchange remittance window carefully or lose the deduction on overseas royalties.
💡 Example
Example 1 — lump-sum royalty (simple case). Meera, a resident individual, writes a novel and receives ₹4,20,000 as royalty during FY 2026-27, paid as a lump-sum assignment of rights. Her qualifying income is ₹4,20,000, but the deduction is capped at ₹3,00,000. So she deducts ₹3,00,000 under Section 151 (old 80QQB) and the remaining ₹1,20,000 is taxable. If she is in the 30% slab (old regime), the deduction saves her roughly ₹93,600 including cess.
Example 2 — ongoing royalty with the 15% rule. Arjun earns ₹3,50,000 as ongoing (non-lump-sum) royalty on a science book. The total value of his books sold during the year was ₹18,00,000. The 15% ceiling = 15% × ₹18,00,000 = ₹2,70,000. Any royalty above ₹2,70,000 is ignored, so his qualifying income is ₹2,70,000 (below the ₹3 lakh cap). His deduction is therefore ₹2,70,000, not the full ₹3,50,000 he received.
A short story. Kavita retired from teaching and finally published the poetry collection she had written over 20 years. In her first year the publisher paid ₹2,10,000 in royalties. Worried the taxman would eat into it, she asked her CA, who explained Section 151: because poetry is a literary work and she is a resident author, the entire ₹2,10,000 was deductible (below the ₹3 lakh cap). She simply had to keep the publisher's royalty certificate on file and file under the old regime. Kavita paid zero tax on that royalty — a small but meaningful reward for a lifetime of writing.
| Feature | Details under Income-tax Act, 2025 |
|---|
| Section number (2025 Act) | Section 151 (old Section 80QQB of the 1961 Act) |
| What Section 150 actually is | Definitions clause — "Interpretation for purposes of section 149" (co-operative societies) |
| Who can claim | Resident individual who is author / joint author |
| Eligible income | Lump-sum or royalty/copyright fees on literary, artistic, scientific books |
| Excluded works | Textbooks, newspapers, journals, magazines, diaries, brochures, guides, pamphlets |
| Maximum deduction | Lower of actual qualifying income or ₹3,00,000 per year |
| Non-lump-sum (15%) rule | Royalty above 15% of value of books sold (before expenses) is ignored |
| Foreign royalty condition | Must be remitted to India in convertible forex within 6 months of year-end (RBI may extend) |
| Certificate | Prescribed certificate from payer (old Form 10CCD); extra certificate for foreign income |
| Tax regime | Available under the old tax regime |
Related sections
Section 152 — Deduction for royalty on patents (old 80RRB) Section 153 — Deduction for interest on deposits (old 80TTA/80TTB) Section 150 — Interpretation clause for co-operative society deductions Section 149 — Deduction in respect of income of co-operative societies Section 148 — Deduction for royalty/technical fees from foreign enterprises Section 123 — Chapter VIII deductions from gross total income (framework)
Frequently asked questions
Is the author royalty deduction Section 150 or Section 151 in the 2025 Act?
It is Section 151 of the Income-tax Act, 2025 (the successor to old Section 80QQB). Section 150 is a separate definitions clause about co-operative societies, so if you were told it is 150, that is a common numbering mix-up.
What is the maximum deduction I can claim as an author?
The lower of your actual qualifying royalty income or ₹3,00,000 in a financial year. Anything above ₹3 lakh is fully taxable.
Can I claim this if I write school textbooks?
No. Textbooks, along with newspapers, journals, magazines, diaries, brochures and similar publications, are specifically excluded. Only literary, artistic or scientific books qualify.
I get ongoing royalties, not a one-time payment. Is my whole royalty deductible?
Not necessarily. For non-lump-sum royalties, income exceeding 15% of the value of books sold during the year (computed before expenses) is ignored, so your deductible amount may be less than what you received.
Can non-residents claim this deduction?
No. Only individuals who are resident in India (including resident but not ordinarily resident) can claim it. Non-residents are not eligible.
Is any certificate required to claim the deduction?
Yes. You must obtain a prescribed certificate from the person paying the royalty (historically Form 10CCD). It is not attached to the return but must be kept and produced if the Assessing Officer asks. Foreign-source income needs an additional certificate.
Can I claim this deduction under the new tax regime?
Generally no. Like most Chapter VIII deductions, it is available under the old tax regime, so compare the ₹3 lakh benefit against the lower slab rates of the new regime before choosing.
C
CA Rajat Agrawal
Chartered Accountant, EaseValue · Reviewed 04 Jul 2026
This explainer is prepared and reviewed by EaseValue's tax team, based on the text of the Income-tax Act, 2025 (as amended by the Finance Act, 2026).
Disclaimer: This page explains the law in general terms for education and is not professional advice. The Income-tax Act, 2025 takes effect from 1 April 2026; provisions, thresholds and interpretations may change. Please confirm your specific position with our team before acting.
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