Puneet Mantri (CA Final student) (534 Points)
30 July 2010
Faiz Ahmed
( Article Trainee)
(1731 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.
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)
(1731 Points)
Replied 30 July 2010
| Originally posted by : Vishal Jain A | ||
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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)
| Originally posted by : Faiz Ahmed | ||
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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. |
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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!!!!!!!!
CAclubindia
