AGGREGATION OF INCOME AND SET OFF OR CARRY FORWARD OF LOSSCentral

Section 80Q of The Income Tax Act 1961

(1)Where in the case of an assessee the gross total income of the previous year relevant to the assessment year commencing on the 1st day of April, 1992, or to any one of the four assessment years next following that assessment year, includes any profits and gains derived from a business carried on in India of printing and publication of books or publication of books, 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 from such profits and gains of an amount equal to twenty per cent thereof.
(2)In a case where the assessee is entitled also to the deduction under section 80HH or section 80HHA or section 80HHC or section 80-I or section 80-IA or section 80J or section 80P, in relation to any part of the profits and gains referred to in sub-section (1), the deduction under sub-section (1) shall be allowed with reference to such profits and gains included in the gross total income as reduced by the deductions under section 80HH, section 80HHA, section 80HHC, section 80-I, section 80-IA, section 80J and section 80P.
(3)For the purposes of this section, “books” shall not include newspapers, journals, magazines, diaries, brochures, tracts, pamphlets and other publications of a similar nature by whatever name called.] 80QQ. [Deduction in respect of profits and gains from the business of publication of books].—Omitted by the Direct Tax Laws (Amendment) Act, 1987 (4 of 1987), s. 26 (w.e.f. 1-4-1989). Original section was inserted by the Taxation Laws (Amendment) Act, 1970 (42 of 1970), s. 21 (w.e.f. 1-4-1971).

↩1.Ins. by Act 21 of 2006, s. 19 (w.e.f. 1-4-2007).

↩2.Ins. by Act 13 of 2018, s. 30 (w.e.f. 1-4-2019).

↩3.Ins. by Act 49 of 1991, s. 35 (w.e.f. 1-4-1992). Earlier section 80Q omitted by Act 16 of 1972, s. 21 (w.e.f. 1-4-1973).

Summary

(1) Where in the case of an assessee the gross total income of the previous year relevant to the assessment year commencing on the 1st day of April, 1992, or to any one of the four assessment years next following that assessment year, includes any profits and gains derived from a business carried.

Practical examples

1Bright Books is an Indian publishing house that prints and publishes educational textbooks in 1993. They are eligible to deduct 20% of their business profits from their taxable income.

2A small press in Kerala focuses on publishing local history books and novels in 1994. Under the Tax Law, they can claim a deduction on their profits for being in the business of publication of books in India.

FAQ

1. Does Section 80Q of the 1961 Act cover the business of printing and publishing?

Yes, it applies to businesses in India that print and publish books, or just publish them.

2. Are magazines included in the definition of "books" for Section 80Q of the Tax Law?

No, the section specifically excludes magazines, newspapers, journals, diaries, and brochures from the definition of "books".

3. For which time period was Section 80Q of the Tax Act effective?

It applied to the assessment year beginning April 1, 1992, and the four following assessment years.

Test yourself

Q1.Under Section 80Q of The Income Tax Act 1961, what is the deduction rate for qualifying profits?

Q2.Which of the following is INCLUDED in the term "books" under Section 80Q of the 1961 Act?

Q3.Under Section 80Q of the Tax Law, the business of publication must be carried on in which location?

Q4.According to Section 80Q of the Tax Act, how is the deduction calculated if the assessee also claims a deduction under Section 80IA?

80PAPreviousSection 80PA Deduction in respect of certain income of Producer Companies.80QQANextSection 80QQA Deduction in respect of professional income of authors of text books in Indian languages.

←Section 80PA Section 80QQA→