Memorandum Explaing the Finance Bill

It has been come to the notice of Revenue Authorities that a large amount of Tax is evaded in the form of Kidney Trade in the Country, as Kidney is not covered in the List of Capital Assets, A substantial revenue was evaded.. In Order to tax such receipts it is proposed to insert a new section.

We Salute Extraordinary human Beings, so if a person has more than two kidneys we will tax transfers of only first two kidneys..

Further, we encourage such a practice to take place in Organised Sector so Corporates, Firms etc are exempt from this section. thus If any person sells his Kidney to any company the reciepts from same shall not be taxable.

Ha ha ha

Hey guys, If such a crazy section comes by which methods tax planning can be done?

Reply must

I Think Here Should Be End of This Topic For Discussion.

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.

Originally posted by : RAHUL
	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

 my dear frns......

First of all Rahul........selling of kidney is not allowed in India though it can be donated..........

Also if donated,it cannot be considered as gift transaction........

Further if we talk abt Income tax related issues,it does not have any monetary value according to act and such transactions r not covered anywhere in the act.......

Conclusion-Irrelevant Post.......!!!!!!!

Really this Question is quite intresting...

Income Tax Act does not look for nature of Income whether "Legal or Illegal"--- Just Tax it..

Day to Day tax are getting so high that in near future you have to pay "Breathing Tax".

This is Just about sale of kidney--- I think one day government will also kick on it.

CBDT has the power to issue circular if such things comes into picture !!

well, i got this sms a few days back!!

I think, it was meant to be taken as a joke.. But I'm surprised at the variety of answers we' are getting here.. :-)
 

Originally posted by : Ashish Ojha
	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...

u should be in advisory board of finance minister

Originally posted by : Anand
	No one can sell his body organs........... its illegal in India. So where the question of  taxability arises???!!!!!!!!

dear frnd you are forgetting that Income is taxable under IT ACT whether it is LEGAL or ILLEGAL

Originally posted by : prateek rijwani
	Originally posted by : RAHUL 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  my dear frns...... First of all Rahul........selling of kidney is not allowed in India though it can be donated.......... Also if donated,it cannot be considered as gift transaction........ Further if we talk abt Income tax related issues,it does not have any monetary value according to act and such transactions r not covered anywhere in the act....... Conclusion-Irrelevant Post.......!!!!!!!

it has monetary value .............. buyer is paying for it 

and income from prohibited activities is also taxable................

PLEASE CORRECT ME IF I M WRONG

THERE ARE TWO ALTERNATES OF IT :

1. THIS IS CAPITAL RECEIPT AND CAPITAL RECEIPT IS NOT TAXABLE UNLESS OTHERWISE PROVIDED IN THE ACT ...............AND HERE IS NO PROVISION REGARDING THIS IN IT ACT

OR 

2. WHEN PERSON SOLD HIS KIDNEY IT CAN BE SAID HE IS DONATED HIS KIDNEY AND DONEE HAS GIFTED THIS SUM OF MONEY TO DONOR THEN IT CAN FALL U/S 56

PLEASE REPLY

nice question