Levy of Income Tax on Intellectual Property
12 Pages Posted: 1 Mar 2014
Date Written: August 21, 2013
All forms of properties, whether tangible or intangible, gives benefit to its holders and so income tax is levied on the income derived from such properties. Intellectual Properties qualifies as an intangible property which gives monetary benefits to its holders and in present days have become a huge source of income due to long term protection and effective enforcement mechanism. This paper states what income tax is, how it is levied on intellectual property, what are the exemptions available to the tax payer of intellectual property as well as the decision of the Indian Courts on the subject. It also discusses the step taken by the Central Government to avoid imposition of Double Taxation followed by suggestion in the concluding paragraph.
Keywords: Intellectual Property, Income Tax and IP, Imposition of Tax on Intellectual Property
JEL Classification: A12, E62, H2, H71, K3, O34
Suggested Citation: Suggested Citation