SUPPOSE I WANT TO SALE MY KIDNEY OF RS 1000000...THEN IT IS TAXALBE OR NOT ..IF TAXABLE THEN WHICH HEAD IT WILL BE TAXABLE...PLEASE EXPALAIN ME WITH SECTION...................
Faiz Ahmed
( Article Trainee)
(1731 Points)
Replied 31 July 2010
| Originally posted by : Jay Shah | ||
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i didnt get you.. what do u mean by GURDA?? |
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DT Fundas - Tarun rustagi
( Author)
(1150 Points)
Replied 31 July 2010
dear kishan
i don't think that there is any proviso in income tax in regard to this but if it will be taxable then i think it will be taxable under other sources.
Faiz Ahmed
( Article Trainee)
(1731 Points)
Replied 31 July 2010
Why everyone is asking same question for past two days...
Just read this link--- https://www.caclubindia.com/forum/is-kidney-received-as-donation-or-gift-taxable--95906.asp
Lokesh
(CS professional)
(493 Points)
Replied 31 July 2010
After selling ur kidneys you will be behind the bars and all your money will be seized so no question of taxability arises.
| Originally posted by : Faiz Ahmed | ||
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Why everyone is asking same question for past two days... Just read this link--- https://www.caclubindia.com/forum/is-kidney-received-as-donation-or-gift-taxable--95906.asp |
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CA SURENDRA KUMAR RAKHECHA
(Practising CA at Surat)
(26258 Points)
Replied 31 July 2010
"Why everyone is asking same question for past two days...
Just read this link--- https://www.caclubindia.com/forum/is-kidney-received-as-donation-or-gift-taxable--95906.asp"
Humour :
I think this is the only way left for someone to earn huge money without doing any work !
SUDHIR & PRADEEP JI
(CA FINAL+LLB + DISA)
(2299 Points)
Replied 31 July 2010
nice question i like it.
it should taxable in other source dear
CA SURENDRA KUMAR RAKHECHA
(Practising CA at Surat)
(26258 Points)
Replied 31 July 2010
To sale kidney to someone in "open market" is a crime. Hence nobody sells like the circumstances explained in the question.
However; for the purpose of income-tax; income is taxable whether it is legal or illegal.
Nevertheless; it cannot be regarded as Income From Other Sources because in general parlance it is never understood that this is one of the source of income.
Section 56(1) reads as under :
Income of every kind which is not to be excluded from the total income under this Act shall be chargeable to income-tax under the head "Income from Other Sources," if it is not chargeable to income-tax under any of the heads specified in section 14, item A to E.
So the application of Section 56(1) is wide enough. A careful reading shows that it says about every kind of income. What is Income is defined in Section 2(24) the nature of which is inclusive. Still from the whole material covered in Section 2(24) it cannot be inferred that one can treat himself as source of income.
The source of income must have character of regular delivering the goods or service.
If one tries to treat it is an asset then one can very well argue that a human body is not an asset u/s 2(14) (because nobody can purchase it because it is not saleable in open market ) hence no capital gains can arise. Moreover, when personal effects are not regarded as capital asset then it is sure that kidney is also not an asset because it is not meant for sale.
There are many controversial issues in the Income-Tax Act so the arguments would be endless. Despite clear judgment on a particular issue; many ITO make exorbitant additions while framing assessment in the name of quality assessment.
Even many High Courts differ in the same matter. Even Supreme Courts differs in its own opinion sometimes.
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
R.S.G.
(student C.A. final b.com m.com)
(41 Points)
Replied 01 August 2010
agreed with surendra sir,
under the income tax act if any income which is not covered under the first 4 heads of income namely income from salary, house property, business or profession & capital gains, is taxable under the head INcome from other sources.
hence the income from sale of kidney is taxable under the head other sources.
RSG
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
CAclubindia
