Head of Income

Tax queries 933 views 9 replies

Which would be the appropriate head of income for Transfer (sale) of Domain Name to another registrant. Would it be under Income from Business or Profession or Income from other sources?

Replies (9)

I thnk it must b charged under business income...

income from the business

Originally posted by : Sunil
Which would be the appropriate head of income for Transfer (sale) of Domain Name to another registrant. Would it be under Income from Business or Profession or Income from other sources?


 

Income from Business.

it will be CAPITAL GAIN. its not Business income because His business is not of selling domain names.

this transfer will amounts to Transfer as per capital gain so liable to capital gain.

So Capital Gain will arise like sale of Licence, Goodwill, Copy Right etc.

 

Originally posted by : Shashi Bhushan
it will be CAPITAL GAIN. its not Business income because His business is not of selling domain names.
this transfer will amounts to Transfer as per capital gain so liable to capital gain.
So Capital Gain will arise like sale of Licence, Goodwill, Copy Right etc.
 

You are right Mr. Shashi Bhushan as selling domain is not business of the assessee. It should be taken under the head capital gain.
 

Agreed with Mr. Shashi Bhusan

Selling Domain is not the business of company hence it will not come under the head Income under head PGBP. It will also not come under residuary head Incom from other source.

Domian of Business comes under the perview of Definition of Capital Assets U/S 2(14) of the act, which says :-

Capital Asset means property of any kind (Fixed, Circulating, movable, immovable, tangible or intangible) whether or not connected with his business or profession.

Exclusions —

  1. Stock-in- trade

  2. Personal effects of the assessee

  3. Agricultural land in a rural area

  4. 6½% Gold Bonds 1977 or 7% Gold Bonds 1980 or National Defence Bonds 1980 issued by the Central Government

  5. Special Bearer Bonds 1991 issued by the Central Government.

  6. Gold Deposit Bonds issued under Gold Deposit Scheme 1999

Hence income from transfering of Domain will be taxable under the head income from Capital Gain.

 It will be income from business and profession...........

Originally posted by : Robin Kumar Gupta
Agreed with Mr. Shashi Bhusan

Selling Domain is not the business of company hence it will not come under the head Income under head PGBP. It will also not come under residuary head Incom from other source.

Domian of Business comes under the perview of Definition of Capital Assets U/S 2(14) of the act, which says :-

Capital Asset means property of any kind (Fixed, Circulating, movable, immovable, tangible or intangible) whether or not connected with his business or profession.

Exclusions —





Stock-in- trade





Personal effects of the assessee





Agricultural land in a rural area





6½% Gold Bonds 1977 or 7% Gold Bonds 1980 or National Defence Bonds 1980 issued by the Central Government





Special Bearer Bonds 1991 issued by the Central Government.





Gold Deposit Bonds issued under Gold Deposit Scheme 1999





Hence income from transfering of Domain will be taxable under the head income from Capital Gain.

agree with sir right yaar income from capital gains ................

thr are two situations if ur bus is of selling domains thn it is buss. income but if it is not so thn this income is cap gain


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