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Transfer of Technical know-how


27 November 2010 If an Indian assessee wants to transfer the self generated technical know-how for a lumpsum consideration, will it be taxed as business income or capital gain?
What are the deductions allowed for the same.

28 November 2010 It will be taxed under business income. Since it is a self generated assets only business related expenditure is allowed as deduction u/s 37.

28 November 2010 I totally agree with Mr.Shailesh.


29 November 2010 Thanks. But wont it be considered as a capital gain? since we are parting with it permanently.



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