Can a Single Transaction Give Rise to Tax Consequences?

Abstract

Tax laws are generally directed to tax businesses or entities which engage into regular transactions. Their coverage, however, is much wider in so far as these laws generally carry specific provisions to tax even one-off transactions, casual activities or irregular events. This article attempts to capture the legal position in India as regards taxation of such events under Indian tax laws relatable to both direct and indirect taxes.

Keywords: Taxing single transaction, Taxing casual activities, Tax non-business dealings

JEL Classification: H25, H26, K34