Tax deduction on royalty income of the company

- Domestic Company in India is always treated as resident of India nd in such case global income is taxable in India. In your case, domestic company is earning royalty income from foreign sources. It is a liability of a foreign company to deduct WHT (Withholding tax) based on income tax provisions in their country subject to DTAA provisions. Under DTAA, usually royalty income is taxable @ 10% flat rate. To claim the benefit of DTAA provisions, submit following documents to the foreign company.

1. TRC i.e. Tax residence certificate

2. Address of company

3. Contact details of Company

Collect WHT certificate from foreign company to claim benefit of DTAA under ITR and for record.

Both sections are applicable to Individuals and not companies.

- 80QQB is available on total royalty received. 

In your case it is actual amount received and not accrued.

Dear Sir,

Hope you are doing well !!

No, both sections are not applicable to domestic companies.

Both sections are applicable to individuals only.

It is available on the total amount of royalty income received,

Hi,

Please note that section 80QQB and section 80RRB is applicable only to an individual and not to a company.

The maximum deduction allowable under section 80QQB and 80RRB is INR 3 lacs each. So, even if you get royalties for multiple work, maximum deduction cannot be more than 3 lacs.

80RRB will not be applicable in your case because 80RRB is for patent and not copyright.

Hi

No. section 80qqb or 80rrb only applicable to individuals not applicable to companies.

Is it a patent?

We need more details to comment on above plus 80QQB and 80RRB is only for individual.

We can discuss on other ways to save tax.

Hope you find the information helpful if you do please rate it 5 and if you need any further discussion you can book consultation.

Thank you