A resident company qualifies for the special tax rate on royalty from a patent developed and registered in India. What is the base income-tax rate on the qualifying royalty, ignoring surcharge and…

Section 194(1), Table item 2, of the Income-tax Act, 2025 taxes a resident patentee's royalty from a patent developed and registered in India at 10%, with no deduction for expenditure; developed means at least 75% of the expenditure on the invention was incurred in India. No higher rate such as 15% or 30% applies to qualifying patent royalty.