Tax implication for income from sale of kidney

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CA ROSHAN TIWARI (Querist)

08 March 2013 if an individual earns an income of Rs. 25 lacs from sale of his/her kidney. what would be the tax implication? Will such income fall under the tax net.?

My knowledge says it is a personal moveable property and therefore not taxable. It will go untaxed .However, income from other sources is an area open to tax such a transaction. Would like to have expert view on this.

Regards,

Roshan Tiwari

Santosh Mishra

Santosh Mishra (Expert)

12 March 2013 When an income is earned on account of transacting the source itself, it is called Capital receipt. When a person selling his kidney, it is sort of transacting his capital, and capital receipts are generally Tax Free.

CA ROSHAN TIWARI

CA ROSHAN TIWARI (Querist)

13 March 2013 Yes, i agree that capital receipts are generally tax free unless specified as taxable.But the basic provisions of capital gains states that transfer of capital assets is subject to capital gain tax. Capital assets means property of any kind and has been defined in an exclusive manner.Personal moveable property has been excluded from the defination.
Now two question arises whether a kidney can be termed as personal moveable property.
another if not taxable under capital gain, is it not taxable under IFOS?

Santosh Mishra

Santosh Mishra (Expert)

13 March 2013
There is no straight answer to this question in tax laws. But I am sure it should not be taxable. There is no question of capital gain, how can one assess that it’s a LTCG or STCG and how one can determine original/acquisition cost of his kidney.@

It can not be taxed as IFOS as it does not seem an income.

Why don’t you write to itprbangalore@gmail.com, please do let us know the feedback you receive from them.

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