The author is a tax and investment expert
Even if the domain name is used by you in your business, the profits would still be taxed as business income. In case you own any foreign asset outside India or have foreign income or are a signatory to any account maintained outside India, you cannot file ITR 1. There are no specific restrictions on a company giving gifts to its employees provided the articles of association of the company provide for it.
What tax should be paid for selling a domain name in India for more than 5 lakhs, and should I file an ITR for that?
The answer would depend on whether you are in the business of dealing with domain names or if you bought the domain name for investment purposes. If you are dealing in domain names, then it is taxed as your business income and you have to file ITR 3. The profits will be computed after deducting expenses incurred for running the business. Even if the domain name is used by you in your business, the profits would still be taxed as business income.
However, in case you had bought it for investment purposes the same would be treated as capital asset and any profit on sale gets taxed as capital gains. You can file ITR 2 if you do not have any business income. If it is treated as an investment and was held for more than three years you have to pay tax at a flat rate of 20% after reducing the indexing the cost incurred for buying it from the sale price. If it was held for less than three years, the profit is treated as short-term capital gains and taxed at your slab rate.
I made some global equity investments using eToro (a broker like Zeroda) while I was an NRI. Now I am moving back to India. Do I need to declare them in my ITR1/2 tax returns?
In case you own any foreign asset outside India or have foreign income or are a signatory to any account maintained outside India, you cannot file ITR 1. For those people who own any asset outside India or have foreign income and are residents of India, the particulars of such assets are required to be disclosed in your ITR. The ITR which is applicable in your case would depend on whether you have any business income or not. In case you do not have any business income, you have to file ITR 2 but if you have any business income you have to use ITR 3. Please note you have to mandatorily file your ITR in India once you become a resident for tax purposes if you own any assets outside India even if you do not have any taxable income in India.
In India, can a company gift property to an employee? What will be the tax implications for the employee?
There are no specific restrictions on a company giving gifts to its employees provided the articles of association of the company provide for it. As far as taxation in the hands of the employee is concerned, the same would be treated as the income of the employee under the head Salaries as any payment received from your employer is treated as salary. Any gift received from the employer is tax-free if the value of the gift does not exceed Rs. 5,000/- in a year. In case it exceeds this threshold whole of the value of the gift becomes taxable without there being any exemption for the threshold of Rs. 5,000/-.
Please note that under the provisions of the Transfer of Property Act, of 1872 the gift deed of the property is required to be registered in India.
The author is a tax and investment expert
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