Explanation
Section 80RRB provides a deduction to encourage individual inventors and innovators. The eligible taxpayer must be a resident individual who is the original grantee of the patent — the person to whom the patent was granted under the Patents Act 1970 — or a person to whom the patent has been assigned, provided they were involved in the development of the patented technology. The patent must be registered in India under the Patents Act 1970; foreign patents do not qualify. The maximum deduction is ₹3 lakh per assessment year on royalty income received in respect of such patents. Foreign source royalties qualify only if repatriated to India within the prescribed period. The deduction applies only under the old tax regime. The key distinction from §80QQB is the subject matter: §80QQB is for creative works (books), while §80RRB is for industrial and technical inventions (patents). A single individual cannot claim both in respect of the same income stream. Separate deduction claims are possible if the individual has both book royalties and patent royalties from different sources. Section 115BBF (30% flat rate on patent royalty) is an alternative to claiming §80RRB — taxpayers should model which option produces a lower tax liability. Verify on the income-tax portal before filing.