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crazy doubt ........must answer

CA Rahul Mittal (na) (253 Points)

30 July 2010

A crazy doubt ..........

If any person sold his kidney .........whether income from this is taxable

and if yes then under which head of income

plz answer

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28 Replies

Nitin (CA Final Student) (78 Points)
Replied 30 July 2010

i think its income from other sources only.. it is in the nature of gift because kidney is donated here and its not a goods to sell in income tax act..

CA Rahul Mittal (na) (253 Points)
Replied 30 July 2010

but my friend .........gift is taxable in the hands of donee and not in the hands of donor

Nitin (CA Final Student) (78 Points)
Replied 30 July 2010

u r right.. so the gifting of kidney is treated so.. but gift should not be for a consideration..

so the gift wat i m saying here is the consideration given by donee for kidney.. its a cash gift according to my knowledge..

CA Rahul Mittal (na) (253 Points)
Replied 30 July 2010

I M NOT SAYING THIS IS GIFT I M ONLY SAYING GIFT IS NOT TAXABLE IN THE HANDS OF DONOR SUBJECT TO SOME CLUBBING PROVISIONS

Nitin (CA Final Student) (78 Points)
Replied 30 July 2010

you are right..

my answer was for your first question.. because in this case donor of kidney (person receiving consideration for kidney) becomes the receiver of gift in cash.. so, for him the consideration will be taxed as gift in cash received..

CA Rahul Mittal (na) (253 Points)
Replied 30 July 2010

Originally posted by : Nitin
	you are right.. my answer was for your first question.. because in this case donor of kidney (person receiving consideration for kidney) becomes the receiver of gift in cash.. so, for him the consideration will be taxed as gift in cash received..

it can be so

Harpreet (* * * * * *) (1670 Points)
Replied 30 July 2010

As per my knowledge the same should be consider in other sources provided the amount received by cheque or white money. If there black money used i.e. cash then why you people bothering any tax liability by selling kidney...

hope u will understand the fact....

CA AYUSH AGRAWAL (Kolkata-Pune-Mumbai) (26986 Points)
Replied 30 July 2010

Till Now in The History of Taxation,

I Have Not Seen Such Case of Income.

CA Rahul Mittal (na) (253 Points)
Replied 30 July 2010

DEAR FRNDS

THIS IS GIFT TAXABLE U/S 56(2)(ic)

CA Ravi Sisodia (CA,CS,CMA) (32226 Points)
Replied 30 July 2010

Its should be include in other sources.

i do agree that gift will be taxable.

but who will be determine value of kidney ?

as per my knowledge no case law regarding to this.

wait for it. ha ha ha.........

1 Like

Max Payne (employed) (2569 Points)
Replied 30 July 2010

Ravindra Sir is right

You cannot determine the COA of the kidney - Hence not taxable as per B C Sreenivasa Shetty's case ruling

Also, Kidney is a personal effect. Gain on the transfer of personal effects cannot be taxed as IFOS.

But pls note that under the proposed DTC, where the COA cannot be determined, COA will be deemed NIL, which will override the decision in the B C Sreenivasa Shetty case.

Ashish Ojha (Chartered Accountant) (469 Points)
Replied 30 July 2010

Dont Worry, Next budget will take care of this and a new section will be Introduced :

"Notwithstanding anything contained in this Act, where any Individual, whether resident or not, transfers his Kidney to any other individual in a scheme of Kidney Transplant, carried on by any qualified surgeon, for a consideration, then the money value of such consideration shall be taxable in the hands of doner as income from other sources in the year of transfer."

Provided that if doner dies during transplant tax shall be recovered from donee itself..

For the removal of doubts, nothing shall be taxable after two or more transfers by the same person...

2 Like