Section 151
Section 151: deduction for royalty income of authors
Section 151 gives a resident individual author a deduction on income earned from writing a literary, artistic or scientific book (excluding text-books) - either a lump-sum payment for assigning copyright, or ongoing royalty/copyright fees.
This explanation is AI-assisted and pending review by our CA/CS team. It is general information, not professional advice - always cross-check against the bare law text above or talk to our tax team for guidance specific to your situation.
What qualifies
The deduction applies to a resident individual author whose gross total income includes income earned in the exercise of their profession, from a lump-sum consideration for assigning or granting an interest in the copyright of a book (literary, artistic or scientific work), or from royalty/copyright fees (lump sum or otherwise) on such a book.
How much can be deducted
The deduction equals the whole of the qualifying income, or ₹3,00,000, whichever is less.
Where the royalty is not a lump-sum consideration for all the author's rights in the book, any portion of the income (before expenses) that exceeds 15% of the value of copies of the book sold during the year is ignored for this deduction.
For income earned from a source outside India, only the amount actually brought into India in convertible foreign exchange within six months of the end of the tax year (or a further period the competent authority allows) counts.
Conditions and definitions
- A prescribed certificate must be furnished with the return of income; for foreign-sourced income, an additional certificate from the prescribed authority is required.
- Once claimed under this section, the same income cannot be deducted again under any other provision.
- "Author" includes a joint author.
- "Books" excludes brochures, commentaries, diaries, guides, journals, magazines, newspapers, pamphlets, text-books for schools, tracts and similar publications.
- "Lump sum" includes a non-returnable advance payment of royalty or copyright fees.
Frequently asked questions
What is the maximum deduction under Section 151?
₹3,00,000, or the whole of the qualifying royalty/lump-sum income from the book, whichever is less.
Does this apply to text-book authors?
No - the definition of "books" for this section explicitly excludes text-books for schools, along with brochures, journals, newspapers, and similar publications.
Can a non-resident author claim this deduction?
No - the section is limited to a resident individual author.
Is there a cap when the royalty isn't a one-time lump sum?
Yes - where the payment is ongoing royalty rather than a full lump-sum buyout, the portion of income exceeding 15% of the value of books sold during the year is excluded from the deduction.
Want this applied to your actual filing, not just explained?
Check your Section 151 author royalty deduction with our tax teamLast updated 9 September 2026