Is the alimony amount taxable ?

721 votes

The Income Tax Act classifies income into two categories - 'revenue receipts' and 'capital receipts'. Generally, revenue receipts are taxable income and are subject to certain deductions/exemptions, whereas capital receipts are non taxable.

When a divorcee receives alimony from estranged spouse, it constitutes as a part of capital receipt. Considering, that you are receiving a lumpsum amount, it will fall under capital receipt, hence you will not have to pay any tax on it. This is because the amount received is not in exchange of any services offered towards any business, vocation or employment. Therefore, the amount that you would receive as alimony would tax free.

However, note that if the alimony is received on a monthly basis, it will be treated as revenue receipt and hence it will be taxable. In such a case, the law interpreted here is that a one time lumpsum amount received will be treated as capital receipt and monthly amount (considered as income) as capital receipt.

Advocate Sapna Malik LawRato

946 votes

According to supreme court guidelines ,one time alimony won't b taxable..but yes if you are getting monthly maintenance than the amount will be taxable according to tax slab.hope i answer your question...take care..

Advocate Preeti JD LawRato

601 votes

No. One lumpsum is not taxable. But if you take it as monthly allowance, then Yes. It falls under IT Act as it is a source of income. Further it can be exactly explained to you once you give full details.

Advocate Wg Cdr J.P Sharma (Retd) LawRato