Hi, I recently sold a website and was wondering if TDS would be deducted on the sale. Buyer is an Indian, so am I. I do not regularly sell websites, it was a capital gain. Sale amount was more than 4 Lakhs but less than 5 lakhs. Please let me know if I am liable to pay TDS. If yes, will the TDS be deducted from the Sale amount or the buyer has to pay extra for TDS? Thanks
In which country website operates i.e. where you developed the website. If it is carrying foreign domain and operated from outside India then you are not liable for TDS as per Indian Income tax law.
It will be a liability of buyer to deduct TDS subject to FEMA rules.
Hi,
Yes, it is a capital gain and you will have to pay tax @20% if you held the website for more than 3 years before selling it.
Otherwise, you will have to pay tax as per your slab rate.
Further, TDS is not required to be deducted.
Please feel free to call/ revert in case you need more clarity.
Thanks and regards
Abhishek Dugar
CA CS B.Com
Hi,
Thanks for the query !
The sale of website shall be taxable under the head capital gains undoubtedly.
However, there is no section prescribing TDS deduction on such transaction at the time of sale.
Thanks
Damini
Hi,
You are liable to taxes. The TDS needs to be deducted from thd sale amount
Regards,
Nikhil
Hi,
website is a fixed asset, so sale of it will result in a capital gain or loss.
depending on residential status in India of both the parties , we need to check if TDS deduction requires or not.
TDS deduction liability falls on buyer. and he is required to deduct TDS from the sale proceeds if he is making any payment to NRI. it is not over and above sale cost.
We also need to look at the period of holding and cost of acquiring the website to arrive at the capital gain / loss.
The buyer need not deduct any TDS in respect of the sale consideration. You need to pay tax as per slabs applicable to you after deducting any expenses incurred to acquire and develop such web site.
Hi
This would be a capital gain.
There would be no applicability of TDS provisions in this case.
Hello,
The liability of TDS totally depends on the buyer. If he falls under the liability of deducting TDS only then he shall deduct TDS.
Trust this clarifies your query.
Feel free to call / get back in case of further clarifications.
Thanking You.
Regards,
Rohit R Sharma
BCOM, FCA, LLB, CERT. FAFP
Hi,
For detailed accurate replies, please provide:
1. Whether seller is resident or non-resident
2. Whether buyer is resident or non-resident
3. Whether sale was made in individual name or some business entity
4. Whether payment was made in INR or any other foreign currency
5. Whether bother buyer and seller have PAN or not
6. Whether buyer has TAN or not
7. Whether any exemption certificate is there with the seller for No-TDS or Lower TDS
All the above points are relevant to give you exact reply.
Regards,
No TDS is to be deducted and its taxable under Capital Gain head .Holding period will decide whether is LTCG or STCG.
