Deduction in respect of royalty on patents.

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..... the Patents Act, 1970 (39 of 1970); and. (d) having gross total income for the tax year which includes royalty, shall be allowed a deduction from such income computed in the manner specified in sub-sections (2) to (6). (2) The deduction under this section shall be equal to the whole of such income referred to in sub-section (1) or three lakh rupees, whichever is less. (3) Where a compulsory l .....

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..... essee furnishes a certificate in the prescribed form, duly signed by the authority as prescribed, along with the return of income setting forth such particulars, as prescribed. (6) No deduction under this section shall be allowed in respect of any income earned from any source outside India, unless the assessee furnishes a certificate in such form, from the authority or authorities, as prescribed .....

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..... ents Act, 1970 (39 of 1970); (g) "royalty" in respect of a patent, means consideration for- (i) the transfer of all or any rights (including the granting of a licence) in respect of a patent; or (ii) the imparting of any information concerning the working of, or the use of, a patent; or (iii) the use of any patent; or (iv) the rendering of any services in connection with the activities r .....

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