Section 152
Section 152: deduction for royalty income on patents
Section 152 is the Income-tax Act, 2025's version of the deduction long known as "80RRB" - for a resident individual who is a registered patentee and earns royalty income from their patent.
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.
Who qualifies
The deduction is available to an individual who is:
- Resident in India;
- A "patentee" - the true and first inventor recorded as such (including joint patentees);
- In receipt of royalty income from a patent registered on or after 1 April 2003 under the Patents Act, 1970; and
- Has gross total income for the year that includes such royalty income.
How much can be deducted
The deduction equals the whole of the royalty income, or ₹3,00,000, whichever is less.
If a compulsory licence has been granted for the patent, the royalty counted for this deduction is capped at whatever the Controller of Patents has fixed as the licence terms - not any higher negotiated figure.
For royalty earned from a source outside India, only the portion actually brought into India in convertible foreign exchange within six months of the end of the tax year (or such extended period as allowed) counts toward the deduction.
Procedural requirement
A prescribed certificate must be furnished along with the return of income to claim this deduction; for foreign-sourced royalty, an additional certificate is required. Once claimed and allowed under this section, the same royalty income cannot be deducted again under any other provision.
Frequently asked questions
Is this the deduction people call "80RRB"?
Yes - the same patent royalty deduction, now numbered Section 152 under the Income-tax Act, 2025.
What's the maximum I can deduct?
₹3,00,000, or the actual royalty income, whichever is less.
Does this apply to a company that owns a patent?
No - Section 152 is specifically for a resident individual who is the patentee (the true and first inventor), not a company.
Want this applied to your actual filing, not just explained?
Check your Section 152 patent royalty deduction with our tax teamLast updated 9 September 2026