Domain Flipping Legal in India: A Practical Guide

If you’re buying domain names to sell them later, you need to know the Indian legal landscape. Nothing stops a profit, but breaking the rules can cost you money or even the domain itself. Below we break down the must‑know points, so you can flip safely.

1. Registration Rules and Trademark Checks

India follows the INRegistry guidelines for .in domains. Before you register a name, run a trademark search on the IP India portal. If a brand already owns the mark, you risk a cybersquatting complaint and the domain can be taken away.

Even if the name isn’t trademarked, avoid names that are clearly tied to existing businesses. A simple Google search can reveal whether a company is using the term. Staying clear of obvious brand names keeps you out of legal disputes.

2. Tax Obligations and Income Reporting

Every profit you make from selling a domain counts as taxable income. In India, the Income Tax Act treats this as "business income" if you flip regularly, or as "capital gains" if it’s a one‑off sale. Register for a PAN and, if your turnover exceeds the GST threshold (₹20 lakhs for most services), you’ll need to charge and remit GST.

Maintain invoices for each sale, note the purchase price, sale price, and any expenses (like renewal fees). This documentation makes filing easier and protects you if the tax department asks for proof.

Also, keep an eye on the Goods and Services Tax (GST) rate for digital services, which is 18 %. If you’re a small seller and stay below the threshold, you can opt for the composition scheme, but you’ll lose the input‑tax credit.

Finally, if you operate through a company or LLP, the tax rates differ. Choose the structure that matches your scale and future plans.

3. Registrar Policies and Transfer Limits

Most Indian registrars require a 30‑day lock period after registration before a domain can be transferred. This rule prevents rapid buy‑sell cycles that could destabilise the market. Some registrars also charge a small transfer fee, so factor that into your profit calculations.

When you list a domain on marketplaces like Flippa or Sedo, make sure the buyer knows about the lock period. Clear communication avoids disputes and refunds.

4. Dispute Resolution Basics

India follows the Uniform Domain-Name Dispute-Resolution Policy (UDRP) for generic top‑level domains (gTLDs) and a local policy for .in names. If a trademark holder files a complaint, the registrar can suspend the domain while the case proceeds.

To protect yourself, keep all communication with buyers, proof of purchase, and records of trademark checks. A well‑documented trail improves your chances if a dispute lands on your desk.

5. Practical Tips for Safe Flipping

• Buy domains that have real commercial potential – short, memorable, and keyword‑rich.
• Renew annually; a lapsed domain disappears from the market and can be re‑registered by someone else.
• Use a reputable registrar that offers easy transfer tools and clear policy pages.
• Set up a simple spreadsheet: domain, purchase date, cost, renewal fees, sale price, tax paid.
• Stay updated with the Ministry of Electronics and Information Technology (MeitY) announcements – they occasionally change .in rules.

Domain flipping can be a rewarding side hustle or full‑time business, but it works only when you respect the legal framework. Follow these steps, keep good records, and you’ll minimize risk while maximizing profit.