It is taxed under the head of capital Gain, because... it is self generated asssets and therefor no cost of indexation available. and it is fully taxable........ha...ha...ha.

haha

its crazy

i think a new head of income should be created this time for such doubts

cheers

In my view no body will sale the same and take money in white

and

no body will give such a big amount in white 

THEY ALL WILL SETTLE PERSONALLY 

BEACAUSE ORGAN CANNOT BE SOLD. THEIR SALE IS PROHIBITED

THEY CAN BE ARRANGED IN RELATIONSHIP ONLY BUT CANNOT BE PURCHASED.

AND DOCTORS WILL ALSO NOT ALLOW THE SAME BEACUSE EVEN HE CAN BE ARRESTED AND FOR SUCH THING. 

AND EVEN IF TAXED THE SAME WILL BE TAXED AS INCOME FROM OTHER SOURCE AS THIS IS RESIDUARY CHARGING SECTION AFTER CLAIMING EXPENSES IF ANY.

WITH THE INVITATION OF LITIGATION UNDER THE CIVIL PROCEDURES AS WELL AS INCOME TAX ACT BEACSUSE THEY DONOT KNOW NOTHING ELSE INITIATING PROCEEDINGS.

friends every one is wrong try to apply the provisions

i will post the answer tommorow .....

when i posted the question in face book only one person who is a chartered accountant  gave the answer correct let us see how many are there here to give correct !!!!!!

Capital asset means property of any kind held by an assesse,whether or not connected with his business or profession. However the following are not capital assets-

1.Stock in trade, raw materials

2. Personl effects

3. agricultural land in rural area

4.a few gold bonds

5.GDB under gold Deposit Scheme,1999.

  Personal effects :- Any movable property held for personal use of the owner or for the use of any member of his family is not a "capital asset".

So the kidney comes under personal effects,as it is used by the owner for personal purpose.So the income from sale of kidney doesnot comes under the chargable of income tax..

As the conditions are not satisfied the income cannot be charged under the capital gain or any other head of income.Therefore income cannot be taxed.

@ Gopal Aggarwal

     Illegal incomes,black money are included in the term of "income" under the Income Tax Act. The income tax law does not make any difference between income accrued or risen from a legal source and income tainted with illegality.

answer ::::

the correct defence for the question as per the act is

it is a capital reciept !

  capital reciept is taxable only  if it is covered specifically  under the act .

as it is not specifically covered it is not taxable !

and some one said illegal income cannot be taxable  illegal income is taxable but the tax authorithies will inform the concerned authorithy regarding that offence

Let us know the correct answer

Not taxable..