MANAGEMENT

Detailed explanation-1: -Royalty income earned by residents are taxable in India. The tax rate for royalty income applicable to residents depend upon the status. The maximum base tax rate is 22% or 25% or 30% (plus applicable surcharge and education cess)*.

Detailed explanation-2: -Section 115BBF provides concessional rate of taxation at 10% on royalty income in respect of exploitation of patents. Salient features of Section 115BBF is provided below: Applicable to Indian resident who is a patentee (eligible taxpayer); Only such patents which are granted under Patents Act, 1970 are considered.

Detailed explanation-3: -Royalties received by domestic or resident foreign corporations from a domestic corporation are subject to a final tax of 20%.

Detailed explanation-4: -What Is a Book Royalty? A book royalty is the amount that a publisher pays an Author in exchange for the rights to publish their book. Royalties are calculated as a percentage of book sales. For example, an author might earn 7.5% royalties on every paperback sold and 25% on every eBook sold.