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Funny tax question

Saurabh Malpani (CA Final) (514 Points)

01 February 2012

if a person sells his kidney for rs 50 lakhs then where will he show this income capital gain business profession other sources

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46 Replies

prashanth (Article student) (120 Points)
Replied 01 February 2012

Originally posted by : Saurabh Malpani
	if a person sells his kidney for50 lakhs then where will he show this income capital gain business profession other sources

It is illegal to sell a kidney (atleast in india)
So it would be bettter not to show inbooks :D

3 Like

CA Hemang Shah (PRACTICE) (658 Points)
Replied 01 February 2012

Nothing is illegal....u can sell to becoming rich.

2 Like

Arif Mohammed Khan (KNOWLEDGE SEEKER) (146 Points)
Replied 01 February 2012

As per the rule the specified income to b shown under Income from other sources but usually people do not show it as it is illegal income.

2 Like

Roshan A (Chartered Accountant) (458 Points)
Replied 01 February 2012

Income from Salary: NO

Income from House Property: NO

Income from Business or Profession:NO

Capital Loss:nope

So Income from Other Sources would be an appropriate head according to me

1 Like

Saurabh Malpani (CA Final) (514 Points)
Replied 01 February 2012

suppose X purchase a man Y and treatng it as his capital asset as X purchased it

X purchased Y only for selling kidney to earn profit

now what will be the head

do we need to provide depreciation? :P

Roshan A (Chartered Accountant) (458 Points)
Replied 01 February 2012

Saurabh,

From the above further query by you it does'nt seem that Y is capital asset(as X purchased it only for Y's kidney,and not Y)

Also Y doesnt seem to be any more useful thing.So No Depreciation !!!

Ashutosh mishra (CA Final & Under Article) (62 Points)
Replied 01 February 2012

In this case no treatment in income tax law. so become exempt

rahul rai (article) (31 Points)
Replied 01 February 2012

according to income tax act, any kind of income (except those exmpted by law) is taxable.. it has nothing to do with its legality or illegality.... so its taxable under income from other sources...

2 Like

sagar (CA Final) (379 Points)
Replied 01 February 2012

is kedney is capital asset? or used for business??

CMA.Manikanta (Grad-CMA &CA-Final) (314 Points)
Replied 01 February 2012

hmmmmm actually its my post u copied my question !!

/forum/details.asp?mod_id=187368&offset=1

any ways the answer is ::::

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 !

CA abhinandan agarwal (CA CS Bcom(H)) (174 Points)
Replied 01 February 2012

TAXABLE UNDER IFOS..INCOME INCUDES LEGAL AS WELL AS ILLEGAL INCOME...

CA Atul Nighot (Chartered) (48 Points)
Replied 01 February 2012

MR Saurabh Malpani. .. Please don’t ask stupid Q...first read the definition of capital asset as per Income tax...!! u will get ur answer..!!

leeladhar (apprentice) (261 Points)
Replied 01 February 2012

In my opinion, It shouldn't not considered as 'income'.So it is not taxable.

kartar singh (article clerk) (34 Points)
Replied 01 February 2012

INCOME TAX IS LEVIED ON INCOME WHETHER IT LEGEL INCOME OR NOT.AND I THINKS FROCEEDS FROM SELLING OF KIDNEY IS TREATED AS A CASUAL INCOME IN THE HAND OF RECEIVER THEREFORE 30% TAX CHARGED