Babu Lal authored a book which is covered as per provision of section 80QQB and received an amount of royalty of ₹2,00,000 @ 20% during the year ended 31.3.2020. He had incurred an expenditure of ₹30,000 for earning the

CS Executive · Tax Laws · PYQS · December 2020
Babu Lal authored a book which is covered as per provision of section 80QQB and received an amount of royalty of ₹2,00,000 @ 20% during the year ended 31.3.2020. He had incurred an expenditure of ₹30,000 for earning the amount of royalty of ₹2,00,000. The entire royalty was received by him from abroad and amount of ₹1,10,000 out of the royalty amount shall be remitted to India till 30.09.2020. He can claim deduction out of such royalty income in assessment year 2020-21 for an amount of
(A) ₹1,70,000
(B) ₹80,000
(C) ₹1,20,000
(D) ₹2,00,000

Answer & Explanation:

The official key records 'B*'. This question is excluded from automatic grading because the source does not supply an unambiguous valid choice. Official source note: Correct option is B i.e. 80000 (110000 -30000). However,while calculating deduction, if proportionate expendiutre is deducted, thus, no options are correct .

Topics: Deductions from Gross Total Income

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