Section 80RRB (New Regime)
Patent Royalty Exemption Removed in the 2025 Default Regime
Quick Answer
Section 80RRB (New Regime) (Patent Royalty Exemption Removed in the 2025 Default Regime) has been deleted under the Income-tax Act, 2025, effective 1st April 2026.
What changed for Section 80RRB (New Regime)
Under the Income Tax Act, 1961, Section 80RRB (New Regime) governs patent royalty exemption removed in the 2025 default regime. Deduction up to Rs. 3,00,000 on royalty income received by resident individuals on registered patents.
When the Income-tax Act, 2025 takes effect on 1st April 2026, Section 80RRB (New Regime) is deleted rather than renumbered. Not Applicable. Inventors and patent holders cannot claim this deduction under the new tax slabs.
For Section 80RRB (New Regime), the practical impact is rated Medium. Affects researchers and individual innovators.
Sec 80RRB (New Regime)
Provision Summary
Deduction up to Rs. 3,00,000 on royalty income received by resident individuals on registered patents.
Deleted
Provision Summary
Not Applicable. Inventors and patent holders cannot claim this deduction under the new tax slabs.
Key Changes & Highlights
- Innovation incentives for individual patent holders are removed from the default tax structure.
Related Sections
Frequently Asked Questions
What is Section 80RRB (New Regime) of the Income Tax Act, 1961 about?
Section 80RRB (New Regime) of the Income Tax Act, 1961 covers patent royalty exemption removed in the 2025 default regime. Deduction up to Rs. 3,00,000 on royalty income received by resident individuals on registered patents.
What happens to Section 80RRB (New Regime) in the Income-tax Act, 2025?
Section 80RRB (New Regime) has been deleted under the Income-tax Act, 2025, with no successor section carrying it forward from 1st April 2026. Not Applicable. Inventors and patent holders cannot claim this deduction under the new tax slabs.
What is the impact of the change to Section 80RRB (New Regime) under the new tax code?
The transition impact for Section 80RRB (New Regime) is rated Medium. Affects researchers and individual innovators.
What should I watch out for when Section 80RRB (New Regime) moves to the 2025 code?
Innovation incentives for individual patent holders are removed from the default tax structure. These points are specific to Section 80RRB (New Regime) (Patent Royalty Exemption Removed in the 2025 Default Regime).
Disclaimer: This mapping of Section 80RRB (New Regime) (Patent Royalty Exemption Removed in the 2025 Default Regime) under the Income-tax Act, 2025 is for educational and reference purposes only, based on publicly available drafts and circulars. As Section 80RRB (New Regime) is currently marked Deleted, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.
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