The Income-Tax Act, 1961

N.-Special provisions for certain kinds of income

180. Royalties or copyright fees for literary or artistic work.-

Where the time taken by the author of a literary or artistic work in the making thereof is more than twelve months, the amount received or receivable by him during any previous year on account of any lump sum consideration for the assignment or grant of any of his interests in the copyright of that work or of royalties or copyright fees (whether receivable in lump sum or otherwise), in respect of that work, shall, if he so claims, be allocated for purposes of assessment in such manner and to such period as may be prescribed:

⁶[Provided that nothing contained in this section shall apply in relation to the previous year relevant to the assessment year commencing on or after the 1st day of April, 2000.]

Explanation.-For the purposes of this section, the expression "author" includes a joint author, and the expression "lump sum", in regard to royalties or copyright fees, includes an advance payment on account of such royalties or copyright fees which is not returnable.

6. Ins. by Act 27 of 1999, s. 67 (w.e.f. 1-4-2000).

⁷[180A. Consideration for know-how.-

Where the time taken by an individual, who is resident in India, for developing any know-how is more than twelve months, he may elect that the gross amount of any lump sum consideration received or receivable by him ⁸[during the previous year relevant to the assessment year commencing on the 1st day of April, 2000 or earlier assessment years] for allowing use of such know-how shall be treated for the purposes of charging income-tax for that year and for each of the two immediately preceding previous years as if one-third thereof were included in his income chargeable to tax for each of those years respectively and if he so elects, notwithstanding anything contained in any other provision of this Act,-

(a) such gross amount shall be so treated, and

(b) the assessments for each of the two preceding previous years shall, if made, be accordingly rectified under section 154, the period of four years specified in sub-section (7) of that section being reckoned from the end of the financial year in which the assessment relating to the previous year in which the amount was received or receivable by such individual is made.

Explanation.-For the purposes of this section, the expression "know-how" has the meaning assigned to it in section 35AB.] 1***

7. Ins. by Act 32 of 1985, s. 31 (w.e.f. 1-4-1986).

8. Subs. by Act 27 of 1999, s. 68, for "during the previous year" (w.e.f. 1-4-2000).

1. Section 181 and sub-heading "O.-Liability of State Governments" omitted by Act 26 of 1988, s. 36 (w.e.f. 1-4-1989).

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