divorce compensation-taxablity

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R B (Querist)
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28 January 2011 One of my client, got settlement amount rs 25 lac from divorce in a registered marriage, is it taxable ?

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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28 January 2011 Citation :- Princess Maheshwari Devi of Pratapgarh v. Commissioner of Income-tax 147 ITR 258 (Bom).

If lump sum amount is received, it will be treated as capital receipt., hence not taxable.
If monthly payments received,being revenue receipt, it should be taxable.

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Guest

Guest (Expert)

28 January 2011 It will not be taxable income

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