Is alimony paid in mutual divorce taxable?

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.

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.