Section 151 — Deduction in respect of royalty income, etc., of authors of certain books other than text-books

(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 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
may be prescribed.
(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.
(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.
(8) For the purposes of this section,—
( a) “author” includes a joint author;
( b) “books” shall not include brochures, commentaries, diaries, guides, jour-
nals, 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;
( 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.