1What is the Section 80RRB deduction?
A deduction for resident patent-holders on royalty income from their patent, up to Rs 3,00,000 a year , in the old regime. Royalty beyond the cap is taxed normally.
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ArticleInventors and patent-holders have a dedicated tax deduction on the royalty their patents earn, much as authors do for books. Here's how Section 80RRB works.
Reviewed by CA Harika Chebolu, FCA · Last updated 2026-06-13
Quick answer
80RRB lets resident patent-holders deduct royalty income up to Rs 3,00,000. Here's how it works, alongside the author royalty deduction.
Section 80RRB allows a resident individual who holds a patent to deduct royalty income from that patent, up to Rs 3,00,000 a year, in the old regime. So a meaningful chunk of your patent royalty can be sheltered from tax.
The deduction is for resident individuals who are the patentees (true and first inventors named in the patent) of a patent registered under the Patents Act. You need the patent in your name and the royalty must arise from it — it's specific to genuine patent-holders.
The deduction is capped at Rs 3,00,000, or the actual royalty if lower. Royalty beyond that cap is taxed normally. For inventors with significant royalty income, the Rs 3,00,000 shelter is a useful, profession-specific benefit.
The deduction comes with conditions, including a required certificate (and, for royalty from abroad, rules on bringing the income into India within the prescribed time). Keep the documentation so the claim holds up.
Section 80RRB for patents parallels Section 80QQB for authors' book royalties — both give up to Rs 3,00,000 in the old regime to reward creators. If you earn from both, each has its own deduction within its rules.
A deduction for resident patent-holders on royalty income from their patent, up to Rs 3,00,000 a year , in the old regime. Royalty beyond the cap is taxed normally.
A resident individual who is the patentee of a patent registered under the Patents Act , where the royalty arises from that patent. It's specific to genuine patent-holders, with a required certificate.
It mirrors Section 80QQB for authors — both give up to Rs 3,00,000 in the old regime , one for patent royalty and one for book royalty, each within its own conditions.
Earning patent royalties? Write to the firm and we'll claim your 80RRB deduction correctly.