Section 80RR. Deduction in respect of professional income from foreign sources in certain cases

3[ 80RR. Deduction in respect of professional income from foreign sources in certain cases. —Where the gross total income of an individual resident in India, being an author, playwright, artist,[4] [musician, actor or sportsman (including an athlete)], includes any income derived by him in the exercise of his profession from the Government of a foreign State or any person not resident in India, 5[there shall be allowed, in computing the total income of the individual, 6[a deduction from such income of an amount equal to— (i) sixty per cent. of such income for an assessment year beginning on the 1st day of April, 2001; (ii) forty-five per cent. of such income for an assessment year beginning on the 1st day of April, 2002; (iii) thirty per cent. of such income for an assessment year beginning on the 1st day of April, 2003; (iv) fifteen per cent. of such income for an assessment year beginning on the 1st day of April, 2004, as is brought into India by, or on behalf of, the assessee in convertible foreign exchange within a period of six months from the end of the previous year or within such further period as the competent authority may allow in this behalf and no deduction shall be allowed in respect of the assessment year beginning on the 1st day of April, 2005 and any subsequent assessment year:] Provided that no deduction under this section shall be allowed unless the assessee furnishes a certificate, in the prescribed form, along with the return of income, certifying that the deduction has been correctly claimed in accordance with the provisions of this section.]]] 7[ Explanation .—For the purposes of this section, the expression "competent authority" means the Reserve Bank of India or such other authority as is authorised under any law for the time being in force for regulating payments and dealings in foreign exchange.] 8[ 80RRA. Deduction in respect of remuneration received for services rendered outside India. —(1) Where the gross total income of an individual who is a citizen of India includes any remuneration received by him in foreign currency from any employer (being a foreign employer or an Indian concern) for any service rendered by him outside India, there shall, in accordance with and subject 1. The proviso omitted by Act 12 of 1990, s. 27 (w.e.f. 1-4-1991). 2. Ins. by Act 27 of 1999, s. 54 ( w.e.f. 1-6-1999). 3. Ins. by Act 14 of 1969, s. 11 (w.e.f. 1-4-1970). 4. Subs. by Act 44 of 1980, s. 20, for "musician or actor" (w.e.f. 1-4-1980). 5. Subs. by Act 12 of 1990, s. 28, for "and such income is received in, or brought into, India by him or on his behalf in accordance with the Foreign Exchange Regulation Act, 1947, and any rules made thereunder, there shall be allowed a deduction from such income of an amount equal to twenty-five per cent. of the income. so received or brought, in computing the total income of the individual" (w.e.f. 1-4-1991). 6. Subs. by Act 10 of 2000, s. 43, for certain words (w.e.f. 1-4-2001). 7. Ins. by Act 27 of 1999, s. 55 (w.e.f. 1-6-1999). 8. Subs. by Act 29 of 1977, s. 19, for section 80RRA (w.e.f. 1-4-1978). Earlier section 80RRA inserted by Act 25 of 1975, s. 17 (w.e.f. 1-4-1975). to the provisions of this section, be allowed, in computing the total income of the individual,[1] [a deduction from such remuneration of an amount equal to— (i) sixty per cent. of such remuneration for an assessment year beginning on the 1st day of April, 2001; (ii) forty-five per cent. of such remuneration for an assessment year beginning on the 1st day of April, 2002; (iii) thirty per cent. of such remuneration for an assessment year beginning on the 1st day of April, 2003; (iv) fifteen per cent. of such remuneration for an assessment year beginning on the 1st day of April, 2004, as is brought into India by, or on behalf of, the assessee in convertible foreign exchange within a period of six months from the end of the previous year or within such further period as the competent authority may allow in this behalf and no deduction shall be allowed in respect of the assessment year beginning on the 1st day of April, 2005 and any subsequent assessment year:] Provided that no deduction under this sub-section shall be allowed unless the assessee furnishes a certificate, in the prescribed form, along with the return of income, certifying that the deduction has been correctly claimed in accordance with the provisions of this section.] 2* * * * * (2) The deduction under this section shall be allowed— (i) in the case of an individual who is or was, immediately before undertaking such service, in the employment of the Central Government or any State Government, only if such service is sponsored by the Central Government; (ii) in the case of any other individual, only if he is a technician and the terms and conditions of his service outside India are approved in this behalf by the Central Government or the prescribed authority. Explanation .—For the purposes of this section,— (a) "foreign currency" shall have the meaning assigned to it in the[3] [Foreign Exchange Management Act, 1999 (42 of 1999)]; (b) "foreign employer" means,— (i) the Government of a foreign State; or - (ii) a foreign enterprise; or - (iii) any association or body established outside India; (c) "technician" means a person having specialised knowledge and experience in— (i) constructional or manufacturing operations or mining or the generation or distribution of electricity or any other form of power; or (ii) agriculture, animal husbandry, dairy farming, deep sea fishing or ship building; or (iii) public administration or industrial or business management; or (iv) accountancy; or (v) any field of natural or applied science (including medical science) or social science; or - (vi) any other field which the Board may prescribe in this behalf, who is employed in a capacity in which such specialised knowledge and experience are actually utilised; 4[(d) "competent authority" means the Reserve Bank of India or such other authority as is authorised under any law for the time being in force for regulating payments and dealings in foreign exchange.] 1. Subs. by Act 10 of 2000, s. 44, for certain words (w.e.f. 1-4-2001). 2. The proviso omitted by Act 12 of 1990, s. 29 (w.e.f. 1-4-1991). 3. Subs. by Act 17 of 2013, s. 4, for "the Foreign Exchange Regulation Act, 1973 (46 of 1973)" (w.e.f. 1-4-2013). 4. Ins. by Act 27 of 1999, s. 56 (w.e.f. 1-6-1999). 1[ 80RRB. Deduction in respect of royalty on patents. —(1) Where in the case of an assessee, being an individual, who is— - (a) resident in India; (b) a patentee; (c) in receipt of any income by way of royalty in respect of a patent registered on or after the 1st day of April, 2003 under the Patents Act, 1970 (39 of 1970), and his gross total income of the previous year includes royalty, there shall, in accordance with and subject to the provisions of this section, be allowed a deduction, from such income, of an amount equal to the whole of such income or three lakh rupees, whichever is less: Provided that where a compulsory licence is granted in respect of any patent under the Patents Act, 1970 (39 of 1970), the income by way of royalty for the purpose of allowing deduction under this section shall not exceed the amount of royalty under the terms and conditions of a licence settled by the Controller under that Act: Provided further that in respect of any income earned from any source outside India, so much of the income, shall be taken into account for the purpose of this section as is brought into India by, or on behalf of, the assessee in convertible foreign exchange within a period of six months from the end of the previous year in which such income is earned or within such further period as the competent authority referred to in clause (c) of the Explanation to section 80QQB may allow in this behalf. (2) No deduction under this section shall be allowed unless the assessee furnishes a certificate in the prescribed form, duly signed by the prescribed authority, along with the return of income setting forth such particulars as may be prescribed. (3) 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 the prescribed form, from the authority or authorities, as may be prescribed, along with the return of income. (4) Where a deduction for any previous year has been claimed and allowed in respect of any income referred to in this section, no deduction in respect of such income shall be allowed, under any other provision of this Act in any assessment year. Explanation .—For the purposes of this section,— (a) "Controller" shall have the meaning assigned to it in clause (b) of sub-section (1) of section 2 of the Patents Act, 1970 (39 of 1970); (b) "lump sum" includes an advance payment on account of such royalties which is not returnable; (c) "patent" means a patent (including a patent of addition) granted under the Patents Act, 1970 (39 of 1970); (d) "patentee" means the person, being the true and first inventor of the invention, whose name is entered on the patent register as the patentee, in accordance with the Patents Act, 1970 (39 of 1970), and includes every such person, being the true and first inventor of the invention, where more than one person is registered as patentee under that Act in respect of that patent; (e) "patent of addition" shall have the meaning assigned to it in clause (q) of sub-section (1) of section 2 of the Patents Act, 1970 (39 of 1970); (f) "patented article" and "patented process" shall have the meanings respectively assigned to them in clause (o) of sub-section (1) of section 2 of the Patents Act, 1970 (39 of 1970); 1. Ins. by Act 32 of 2003, s. 45 (w.e.f. 1-4-2004). (g) "royalty", in respect of a patent, means consideration (including any lump sum consideration but excluding any consideration which would be the income of the recipient chargeable under the head "Capital gains" or consideration for sale of product manufactured with the use of patented process or of the patented article for commercial use) for— or (i) the transfer of all or any rights (including the granting of a licence) in respect of a patent; (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 referred to in sub-clauses (i) to (iii); (h) "true and first inventor" shall have the meaning assigned to it in clause (y) of sub-section (1) of section 2 of the Patents Act, 1970 (39 of 1970).] 80S. [ Deduction in respect of compensation for termination of managing agency, etc., in the case of assessees other than companies .] Omitted by the Finance Act , 1986 (23 of 1986), s . 22 ( w.e.f . 1-4-1987). Original section was introduced in place of old section 112 by the Finance ( No . 2) Act , 1967 (20 of 1967), s . 33 and the Third Schedule ( w.e.f . 1-4-1968). 80T. [ Deduction in respect of long-term capital gains in the case of assessees other than companies. ] Omitted by the Finance Act, 1987 (11 of 1987), s . 38 ( w.e.f . 1-4-1988). Original section was inserted by the Finance ( No . 2) Act , 1967 (20 of 1967), s . 33 and the Third Schedule ( w.e.f . 1-4-1968) in replacement of section 114. 80TT. [ Deduction in respect of winnings from lottery .] Omitted by the Finance Act , 1986 (23 of 1986), s . 24 ( w.e.f . 1-4-1987). Original section was inserted by the Finance Act , 1972 (16 of 1972), s. 22 (w.e.f. 1-4-1972) and amended by the Finance ( No . 2) Act , 1980, ( w.e.f . 1-4-1981). 1[ CA.—Deductions in respect of other incomes 80TTA.Deduction in respect of interest on deposits in savings account. —(1) Where the gross total income of an assesse[2] [(other than the assessee referred to in section 80TTB)], being an individual or a Hindu undivided family, includes any income by way of interest on deposits (not being time deposits) in a savings account with— (a) a banking company to which the Banking Regulation Act, 1949 (10 of 1949), applies (including any bank or banking institution referred to in section 51 of that Act); (b) a co-operative society engaged in carrying on the business of banking (including a co-operative land mortgage bank or a co-operative land development bank); or (c) a Post Office as defined in clause (k) of section 2 of the Indian Post Office Act, 1898 (6 of 1898), 1. Ins. by Act 23 of 2012, s. 31 (w.e.f. 1-4-2013). 2. Ins. by Act 13 of 2018, s. 31 (w.e.f. 1-4-2019). there shall, in accordance with and subject to the provisions of this section, be allowed, in computing the total income of the assessee a deduction as specified hereunder, namely:— (i) in a case where the amount of such income does not exceed in the aggregate ten thousand rupees, the whole of such amount; and (ii) in any other case, ten thousand rupees. (2) Where the income referred to in this section is derived from any deposit in a savings account held by, or on behalf of, a firm, an association of persons or a body of individuals, no deduction shall be allowed under this section in respect of such income in computing the total income of any partner of the firm or any member of the association or any individual of the body. Explanation .—For the purposes of this section, "time deposits" means the deposits repayable on expiry of fixed periods.] 1[ 80TTB. Deduction in respect of interest on deposits in case of senior citizens. —(1) Where the gross total income of an assessee, being a senior citizen, includes any income by way of interest on deposits with— (a) a banking company to which the Banking Regulation Act, 1949, applies (including any bank or banking institution referred to in section 51 of that Act); (b) a co-operative society engaged in carrying on the business of banking (including a cooperative land mortgage bank or a co-operative land development bank); or (c) a Post Office as defined in clause (k) of section 2 of the Indian Post Office Act, 1898, there shall, in accordance with and subject to the provisions of this section, be allowed, in computing the total income of the assessee, a deduction— (i) in a case where the amount of such income does not exceed in the aggregate fifty thousand rupees, the whole of such amount; and (ii) in any other case, fifty thousand rupees. (2) Where the income referred to in sub-section (1) is derived from any deposit held by, or on behalf of, a firm, an association of persons or a body of individuals, no deduction shall be allowed under this section in respect of such income in computing the total income of any partner of the firm or any member of the association or any individual of the body. Explanation .—For the purposes of this section, "senior citizen" means an individual resident in India who is of the age of sixty years or more at any time during the relevant previous year.] 2[ D . —Other deductions 80U.[3] [ Deduction in case of a person with disability. —[4] [(1) In computing the total income of an individual, being a resident, who, at any time during the previous year, is certified by the medical authority to be a person with disability, there shall be allowed a deduction of a sum of seventy-five thousand rupees: 1. Ins. by Act 13 of 2018, s. 32 (w.e.f. 1-4-2019). Provided that where such individual is a person with severe disability, the provisions of this sub-section shall have effect as if for the words "seventy-five thousand rupees", the words "one hundred and twenty-five thousand rupees" had been substituted.] (2) Every individual claiming a deduction under this section shall furnish a copy of the certificate issued by the medical authority in the form and manner, as may be prescribed, along with the return of income under section 139, in respect of the assessment year for which the deduction is claimed : Provided that where the condition of disability requires reassessment of its extent after a period stipulated in the aforesaid certificate, no deduction under this section shall be allowed for any assessment year relating to any previous year beginning after the expiry of the previous year during which the aforesaid certificate of disability had expired, unless a new certificate is obtained from the medical authority in the form and manner, as may be prescribed, and a copy thereof is furnished along with the return of income under section 139. - 1[ Explanation.— For the purposes of this section,— (a) "disability" shall have the meaning assigned to it in clause (i) of section 2 of the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 (1 of 1996), and includes "autism", "cerebral palsy" and "multiple disabilities" referred to in clauses (a), (c) and (h) of section 2 of the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999 (44 of 1999); (b) "medical authority" means the medical authority as referred to in clause (p) of section 2 of the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 (1 of 1996), or such other medical authority as may, by notification, be specified by the Central Government for certifying "autism", "cerebral palsy", "multiple disabilities", "person with disability" and "severe disability" referred to in clauses (a), (c), (h), (j) and (o) of section 2 of the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999 (44 of 1999); (c) "person with disability" means a person referred to in clause (t) of section 2 of the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 (1 of 1996), or clause (j) of section 2 of the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999 (44 of 1999); (d) "person with severe disability" means— (i) a person with eighty per cent or more of one or more disabilities, as referred to in sub-section (4) of section 56 of the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 (1 of 1996); or (ii) a person with severe disability referred to in clause (o) of section 2 of the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999 (44 of 1999).]] 80V. [ Deduction from gross total income of the parent in certain cases .] Omitted by the Finance Act, 1994 (32 of 1994), s . 28( w.e.f . 1-4-1995). 80VV. [ Deduction in respect of expenses incurred in connection with certain proceedings under the Act .] Omitted by the Finance Act , 1985 (32 of 1985), s . 25 ( w.e.f . 1-4-1986). Original section was inserted by the Taxation Laws (Amendment) Act , 1975 (41 of 1975), s . 26( w.e.f. 1-4-1976). 1. Subs. by Act 23 of 2004, s. 19, for the Explanation (w.e.f. 1-4-2005).