Report No. 12
L-Special provisions for certain kinds of income.
187. 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 as hereunder-
(i) where the time so taken is less than twenty-four months, one-half of the amount of such lump sum, royalties or fees as the income of the previous year in which the whole amount is received or receivable, and the other half as the income of the next succeeding previous year; and
(ii) where the time so taken is twenty-four months, or more, one-third of the amount of such lump sum, royalties or fees as the income of the previous year in which the whole amount is received or receivable, and one-third of the said amount as the income of each of the two next succeeding previous years.
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.