i have an querry please tell me that husband is giving an compenstaion to her wife for education of their child. as they are divorsed. now tell me this compensation is taxable or not
3 Replies
CA. ANKUR
(ASST. MANAGER ACCOUNTS)
(54 Points)
Replied 02 February 2010
Dear Sunny
If the compensation give as per order of court then such compensation is deductible for the husband & taxble for wife
If it is not as per courts order & is just a mutual understanding between wife & husband then it is neither deductible for husband nor taxable for wife
In short as per law the Charge sholuld be created by law and not by mutual understanding then only it is deductible.
Amir
(Learner)
(4016 Points)
Replied 02 February 2010
Dear Sunny,
The above amount of so called compensation cannot be said as Income of either wife or child...
Diversion by overidding title
CA Dhiraj Ramchandani
(CA, M. com)
(10823 Points)
Replied 02 February 2010
Yup, though divorced,.... I think the said amount can't be termed as income for wife.... and husband can't claim deduction for the same....
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