Go Ad-Free on CAclubindia with Daily Mobile Updates. Subscribe Now!

Head of Income

Sunil (Trader) (2611 Points)

22 December 2009

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?

Reply
Follow
Share

9 Replies

CA. Megha Topiwala (Job) (1534 Points)
Replied 22 December 2009

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

Upgrade to CAclubindia Pro. Subscribe Now!

Vivek Jarial (Student) (272 Points)
Replied 22 December 2009

income from the business

Prabeer (B. COM (H) CA & CS Final) (5484 Points)
Replied 22 December 2009

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.

Shashi Bhushan (Learner, Jalandhar) (996 Points)
Replied 22 December 2009

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.

Shudhanshu Agrawal (Business) (2570 Points)
Replied 22 December 2009

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.

Upgrade to CAclubindia Pro. Subscribe Now!

Robin Kumar Gupta (profession) (179 Points)
Replied 22 December 2009

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.

rahul agarwal (CA FINAL STUDENT) (134 Points)
Replied 22 December 2009

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

Mohd Javed Khan (CA FINAL) (622 Points)
Replied 22 December 2009

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.