imp

i think it is not legal

i thought selling ur blood or any body part is illegal

Hi Vaishali

Even its illegal but illegal income is also chargeable under the head income from other sources and illegal expendiutre will not be allowed

CIT  v  K. Thangamani CIT  v  K. Thangamani  December 5, 2008, it was held by Madras High Court that

illegality tainted with the earning has no bearing on its taxability; the assessee having acquired income by unethical manner or by resorting to acts forbidden by law, cannot be heard to say that the State cannot be a party to such sharing of ill-gotten wealth; even if the assessee was prosecuted by Law Enforcing Authorities for commission of offence, the income earned by the offender still would be an income liable for assessment.

I Hope that you will find this information helpful.

Regards

Vijay Kumar

I think Income tax act does not consider the legality of the income. It may be legal or illegal. I think it will be treated as Income from other sources. Because it doenot fall under the head Salaries, HP, Business or Profession and capital gains.

Hi Vamshi

I do agree with u that the Income tax act does not consider the legality of the income. and the compensation recd by some one to part out ones body part fall under the head of Salaries, HP, Business or Profession and capital gains. and therefore residuary head is Income from other Source... but even in that the prerequisite is INCOME  as defined under Section 2 (40) of the Income tax Act. Is this qualify under that is a concern.....

I dont much about this is topic.

I can be with Mr.Raju. Whether such proceeds can be treated as income.

 I agree with Mr Vijay

Agree with vijay

Mr.Vijay is correct

vamshi n vijay r rite..

Quiet an interesting as well as strange question. In my opinion the tax would be levied under the head other source. But the question is would this be treated as sale of good. If yes then what would be the cost of purchase. Further would the cost of acquiring it be allowed as deduction while computing the income. Also whether the expenses of doctor and medicines would be allowed as deduction under section 57.