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Is alimony paid in mutual divorce taxable?


16-Dec-2023 (In Tax Law)
is one time settlement amount ( lumsum) is taxable for wife in divorce by mutual consent
Answers (2)


LawRato

Answer #1
772 votes
No it is not taxable in any condition because it is given by husband to wife. it will be computed as tax free receipt as gift. It is already taxed on husband income, it will be double taxation if tax charge on it.
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Advocate Brajesh Kumar

Adv. Brajesh Kumar

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Answer #2
746 votes
The term 'alimony' is not covered under the definition of 'income' and there is no specific provision which governs its taxability under the Income Tax Act. But the lump sum amount received is considered to be a capital receipt and a capital receipt is not taxable as per the act. so, one time settlement amount is not taxable for the former spouse.
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Advocate Tulasa Neupane

Adv. Tulasa Neupane

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Disclaimer: The above query and its response is NOT a legal opinion in any way whatsoever as this is based on the information shared by the person posting the query at lawrato.com and has been responded by one of the Divorce Lawyers at lawrato.com to address the specific facts and details.

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