MR. Jatin Jindal
Section 57, which provides that any other expenditure (not being in the nature of capital expenditure) laid out or expended wholly and exclusively for making or earning such income will be allowed as deduction. T hus expenses incurred for earning any illegal income taxable under the head `income from other sources', though prohibited under law, will be allowed as deduction IFit can be established that it was incurred for earning that illegal income.
So you can claim Expenses of Doctor and medicines as deduction under section 57 while calculating illegal income. but commission paid for sale of Kidney to any agent who arranges the buyer will not be allowed.
I hope it will clear your doubt. if not feel free to ask again.
Regards
Vijay kumar