Section 151 · Deductions
Section 151 of the Income-tax Act, 2025 — Deduction for Royalty Income of Authors of Books (other than Text-books)
By CA Rajat Agrawal
Updated 04 Jul 2026
Chapter VIII
📜 What the law says — Section 151, Income-tax Act 2025
151. (1) Where, in the case of an individual, being an author resident in India,
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).
(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 ` 300000, whichever is less.
(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 for the purposes of
deduction under this section.
18. Substituted by the Finance Act, 2026, w.e.f. 1-4-2026. Prior to its substitution, section 150
read as under :
‘150. Interpretation for purposes of section 149.—For the purposes of section 149,—
(a) “consumers’ co-operative society” means a society for the benefit of the consumers;
(b) “primary agricultural credit society” has the same meaning as assigned to it in Part
V of the Banking Regulation Act, 1949 (10 of 1949); and
(c) “primary co-operative agricultural and rural development bank” means a society
having an area of operation confined to a taluk, the principal object of which is to
provide long-term credit for agricultural and rural development activities.’
(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.
(5) Deduction under this section shall not be allowed unless the assessee furnish-
es a certificate in such form and manner, as may be prescribed, duly
In plain language
What Section 151 is about
Section 151 of the Income-tax Act, 2025 gives resident authors a tax break on the money they earn from their books. If you write a book of a literary, artistic or scientific nature and earn royalty, copyright fees or a lump-sum for assigning the copyright, you can deduct up to ₹3,00,000 of that income from your total income before tax is calculated. This provision is the successor to the well-known Section 80QQB of the Income-tax Act, 1961 — the concept, the ₹3 lakh cap and the conditions have been carried forward almost identically, only the section number and drafting have changed under the new Act (effective 1 April 2026).
Who can claim the deduction
- Individuals only — you must be an individual author who is resident in India for the tax year. Companies, firms, LLPs and (unlike a common misconception) HUFs cannot claim it.
- Joint authors are covered — the section expressly states that "author" includes a joint author. Each co-author claims on their own share of the income, and each gets a separate ₹3,00,000 ceiling.
- The income must be earned in the exercise of your profession as an author — casual or one-off writing income of a non-author does not qualify.
What income qualifies
- Lump-sum consideration for the assignment or grant of any interest in the copyright of the book.
- Royalty or copyright fees, whether received as a lump sum or otherwise (for example, a per-copy royalty).
- The book must be a work of literary, artistic or scientific nature.
The important 15% cap on running royalties
There is a special rule to stop the deduction being inflated. Where the royalty is not a lump-sum (i.e. it is a running per-copy royalty and does not represent a transfer of all rights), the qualifying amount is limited to 15% of the value of the books sold during the tax year. Anything above 15% of book-sale value is ignored and cannot be part of the deduction. A pure lump-sum consideration for assigning all rights is not subject to this 15% test.
Which "books" are excluded
The word "books" is defined narrowly. It does not include brochures, commentaries, diaries, guides, journals, magazines, newspapers, pamphlets, text-books for schools, tracts and other publications of a similar nature. So a school textbook author cannot claim under this section — this is why the heading says "other than text-books".
Foreign royalty income — the 6-month rule
If the royalty or copyright income is earned from outside India, the deduction is available only for the amount brought into India in convertible foreign exchange within six months from the end of the tax year (or within the further period the RBI/competent authority allows). Money that stays abroad beyond this window does not qualify.
Compliance and certificate
- You must furnish a certificate from the payer (publisher/person making the payment) verifying the royalty, along with your return. Under the 2025 Act rules this certificate is prescribed as Form 36 (the equivalent of Form 10CCD under the old law).
- For foreign income, a certificate in the prescribed form from the prescribed authority confirming the foreign-exchange remittance is required.
- The deduction is only available if you file your return; it reduces your taxable income, it is not a refund by itself.
No double deduction
Once income has been claimed and allowed under Section 151, no deduction on that same income can be claimed under any other provision of the Act in any tax year. You cannot double-dip.
Old regime vs new regime — a practical caution
Deductions of this Chapter (formerly Chapter VI-A) are generally not available under the default new tax regime. To claim Section 151 you will typically need to opt for the old/optional regime where such deductions are permitted. Check your regime choice before relying on this benefit.
💡 Example
Example 1 — Lump-sum royalty within the cap. Ravi, a resident novelist, receives ₹4,50,000 as royalty from his publisher for his novel during FY 2026-27. His deduction under Section 151 is the lower of the actual income (₹4,50,000) or ₹3,00,000. So he deducts ₹3,00,000. If his total income before this deduction was ₹9,00,000, it drops to ₹6,00,000, saving tax on ₹3,00,000.
Example 2 — Running royalty and the 15% test. Meera earns a per-copy royalty of ₹2,80,000. Her book sales for the year were valued at ₹15,00,000. The 15% cap is ₹2,25,000 (15% of ₹15,00,000). Because her royalty (₹2,80,000) exceeds 15% of sales, only ₹2,25,000 qualifies; the excess ₹55,000 is ignored. Her deduction is the lower of ₹2,25,000 and ₹3,00,000 = ₹2,25,000.
A short story. Anand, a retired professor, self-published a science book abroad and earned ₹3,50,000 in foreign royalty. Thrilled about the ₹3 lakh deduction, he left the money in his US account. His CA gently reminded him: to claim Section 151 on foreign income, the money must be brought into India in convertible foreign exchange within six months of the year-end and backed by the prescribed certificate. Anand remitted ₹3,00,000 in time, secured Form 36 from the platform, and comfortably claimed the full ₹3,00,000 — the rest stayed taxable simply because it never came home in time.
| Feature | Section 151 (Income-tax Act, 2025) |
|---|
| Who can claim | Individual author resident in India (includes joint author) |
| Maximum deduction | Lower of actual qualifying income or ₹3,00,000 |
| Income covered | Lump-sum copyright consideration; royalty/copyright fees on literary, artistic or scientific books |
| Cap on running (non-lump-sum) royalty | Limited to 15% of value of books sold in the year; excess ignored |
| Excluded publications | Brochures, diaries, guides, journals, magazines, newspapers, pamphlets, school text-books, tracts, similar |
| Foreign income condition | Must be remitted to India in convertible foreign exchange within 6 months of year-end |
| Certificate required | Form 36 from payer (foreign income: prescribed-authority certificate) |
| Double deduction | Not allowed under any other provision once claimed here |
| 1961 Act equivalent | Section 80QQB |
Related sections
Section 152 — Deduction for royalty on patents Section 154 — Deduction for interest on savings account (80TTA equivalent) Section 80QQB (1961 Act) — Royalty income of authors, predecessor provision Section 150 — Deduction for royalty from patents / IP deductions in Chapter Section 144 — Deduction in respect of medical insurance (80D equivalent) Section 194 — TDS on royalty payments to authors
Frequently asked questions
What is the maximum deduction available under Section 151?
The deduction is the lower of the actual qualifying royalty/copyright income or ₹3,00,000 in a tax year. You cannot deduct more than ₹3 lakh even if your royalty is higher.
Can a company or an HUF claim this deduction?
No. Section 151 is available only to an individual author who is resident in India. Companies, firms, LLPs and HUFs are not eligible, though joint (co-) authors are specifically covered.
Are textbook authors eligible?
No. The definition of 'books' specifically excludes text-books for schools, along with brochures, diaries, guides, journals, magazines, newspapers and similar publications. The book must be literary, artistic or scientific in nature.
How is the deduction limited for per-copy (running) royalties?
If the royalty is not a lump sum, only up to 15% of the value of the books sold during the year qualifies. Any royalty above that 15% threshold is ignored before applying the ₹3 lakh cap.
What about royalty earned from outside India?
Foreign royalty qualifies only if it is brought into India in convertible foreign exchange within six months from the end of the tax year (or a longer period allowed by the RBI/competent authority), supported by the prescribed certificate.
Which form do I need to claim Section 151?
You need a certificate from the payer verifying the royalty — prescribed as Form 36 under the 2025 Act (the equivalent of the old Form 10CCD). For foreign income, a certificate from the prescribed authority is also required.
Can I claim this deduction under the new tax regime?
Generally no. Chapter VI-A style deductions like Section 151 are usually not available under the default new regime, so you would need to opt for the old/optional regime to claim it. Confirm your regime choice before relying on it.
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.
💬 Discussion & questions
0 comments · Ask anything about this — a Chartered Accountant or the community will reply.
Have a doubt about this (Section 151)? Ask here 👇
Free · takes 20 seconds · our CA answers. No account needed.
No comments yet — be the first to ask. 👆
EaseValue