Amount received by Divorcee is taxable?
This query is : Resolved
26 March 2009
Is a lump sum amount (compensation)received by a lady from her husband at the time of Divorce taxable under the Income Tax Act 1961? If yes, then how it will be computed and under which Head of Income?
26 March 2009
i dont think it will be taxable...
26 March 2009
I support Devanshi
The receipt does not fall under the perview of Income Tax as the amount paid for the maintenance and can not be treated as income
The receipt does not fall under the perview of Income Tax as the amount paid for the maintenance and can not be treated as income
27 March 2009
Princess Maheshwari Devi of Pratapgarh v. Commissioner of Income-tax 147 ITR 258 (Bom)
where as lump sum amoount is received, it will be treated as capital receipt., hence not taxable.
if monthly payments received being revenue receipt it should be taxable
However , important to note that if the settlement is as per court , the Revenue authorities will not raise question ..If the settlement is out of court, the Revenue authorities , as is the nature, may raise the question regarding the taxability of Lump sum payments. Therefore, it is better to get the stamp of Court in case of settlement.
regards........!
where as lump sum amoount is received, it will be treated as capital receipt., hence not taxable.
if monthly payments received being revenue receipt it should be taxable
However , important to note that if the settlement is as per court , the Revenue authorities will not raise question ..If the settlement is out of court, the Revenue authorities , as is the nature, may raise the question regarding the taxability of Lump sum payments. Therefore, it is better to get the stamp of Court in case of settlement.
regards........!
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28 March 2009
a another quesion came in my mind regarding the taxability of the revenue receipt of divorce compensation that is the amount received is allowed as dediction to husband.
if not does it not double taxation
if not does it not double taxation
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