Section 80RRB → Section 151
Deduction in respect of royalty on patents
Quick Answer
Section 80RRB of the Income Tax Act, 1961 (Deduction in respect of royalty on patents) corresponds to Section 151 of the Income-tax Act, 2025, effective 1st April 2026. Status: Retained.
What changed for Section 80RRB
The starting point is Section 80RRB of the Income Tax Act, 1961 — deduction in respect of royalty on patents. Allows deduction up to Rs. 3 Lakhs for royalty income received by a resident individual for a patent registered under the Patents Act, 1970.
From 1st April 2026, the same subject sits at Section 151 of the Income-tax Act, 2025 — retained and renumbered as Section 151 of the Income-tax Act, 2025. Retained. Promotes indigenous research and development.
For Section 80RRB, the practical impact is rated Low. Niche but important for inventors.
Sec 80RRB
Provision Summary
Allows deduction up to Rs. 3 Lakhs for royalty income received by a resident individual for a patent registered under the Patents Act, 1970.
Sec 151
Provision Summary
Retained. Promotes indigenous research and development.
Key Changes & Highlights
- Direct API integration with the Indian Patent Office to auto-verify the patentee's details.
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Frequently Asked Questions
What is Section 80RRB of the Income Tax Act, 1961 about?
Section 80RRB of the Income Tax Act, 1961 covers deduction in respect of royalty on patents. Allows deduction up to Rs. 3 Lakhs for royalty income received by a resident individual for a patent registered under the Patents Act, 1970.
Which section replaces Section 80RRB in the Income-tax Act, 2025?
Section 80RRB of the Income Tax Act, 1961 maps to Section 151 of the Income-tax Act, 2025, effective 1st April 2026 (status: Retained). Retained. Promotes indigenous research and development.
What is the impact of the change to Section 80RRB under the new tax code?
The transition impact for Section 80RRB is rated Low. Niche but important for inventors.
What should I watch out for when Section 80RRB moves to the 2025 code?
Direct API integration with the Indian Patent Office to auto-verify the patentee's details. These points are specific to Section 80RRB (Deduction in respect of royalty on patents).
Disclaimer: This mapping of Section 80RRB (Deduction in respect of royalty on patents) to Section 151 of the Income-tax Act, 2025 is for educational and reference purposes only, based on publicly available drafts and circulars. As Section 80RRB is currently marked Retained, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.
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