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Is kidney received as donation or gift taxable?

Puneet Mantri (CA Final student) (534 Points)

30 July 2010  
Is kidney received as donation or gift taxable to the person receiving it? Lets suppose other kidneys are being sold in the market @ Rs.100000.00. Then is the kidney received free of cost taxable as gift?

 9 Replies

Faiz Ahmed ( Article Trainee) (1721 Points)
Replied 30 July 2010

How can you tax it???? There should be some pre- determined value to it. Moreover, its not a traded commodity. It is donated on person will and transplanted to a needy person. 


It cannot be sold and if its sold and you are purchasing it, you will be first put behind bars. That will be more heavy penalty than paying tax on it.

CA Kaushal (Assistant Manager ) (252 Points)
Replied 30 July 2010

Good one faiz

1 Like

CA Trinath Galla (student) (3130 Points)
Replied 30 July 2010

ha ha......faiz explained it fairly

Vishal Jain A (Practicing CA) (941 Points)
Replied 30 July 2010

Hi friends,

Legality is nothing to do with income tax...  but still it is not taxable as the case given by my friend was of gift or donation... And it is not covered by s. 56(2)(vii) of Income Tax Act which is relating to gift tax..

Faiz Ahmed ( Article Trainee) (1721 Points)
Replied 30 July 2010

Originally posted by : Vishal Jain A

Hi friends,

Legality is nothing to do with income tax...  but still it is not taxable as the case given by my friend was of gift or donation... And it is not covered by s. 56(2)(vii) of Income Tax Act which is relating to gift tax..

Yes you are right... There is no chance to treat as gift wrapped in paper(currency);)


(Guest)

ya it can be taxable in heaven or hell


(Guest)
Originally posted by : Faiz Ahmed

How can you tax it???? There should be some pre- determined value to it. Moreover, its not a traded commodity. It is donated on person will and transplanted to a needy person. 




It cannot be sold and if its sold and you are purchasing it, you will be first put behind bars. That will be more heavy penalty than paying tax on it.

i agree

Shiva Kumar (CA Final) (208 Points)
Replied 01 August 2010

Jokes apart,

 

Even an illegal income is taxable and there are plenty of cases where even heroin seized and destroyed was allowed as business loss.

 

In this issue, it may illegal, but alas it is an Income.

 

Be objective my friends. BUT THIS Receipt is not a REVENUE REceipt, but a CAPITAL RECEIPT.

 

It is well known law that ALL REVENUE receipts are taxable and CAPITAL Receipts are TAXABLE ONLY when SPECIFICALLY made taxable.

 

As there is no provision in Income tax act, 1961 to tax this CAPITAL Receipt, this is NOT Taxable.

 

Shiva

Puneet Mantri (CA Final student) (534 Points)
Replied 02 August 2010

thanks for the reply guys!!!!!!!!


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