23 August 2017
Dear Sir, My cousin sister has divorced in 2013.She has received alimony of 15 lakhs in cash lumpsum ordered by court. Is this amount tax free.Can she deposit this whole amount in bank account.Has she will be depositing amount now ,will I.T DEPT Can ask why u not deposited amount in 2013 itself.Please put some light on this.
24 August 2017
When was the Cash actually received by her. If it was received in 2013 & deposited now, the question can be asked as to why it was not already deposited. This question takes on more significance because of Demonetisation. While it is possible the amount may have been received in other than Specified Bank Notes of Rs 500 & Rs.1000, the question may never the less arise. If cash in excess of Rs. 10,00,000/- is deposited in a FY, it will be reported in AIR CIB i believe calls for information for cash deposits in excess of Rs. 50,000/- in a single day. We are unaware of 1. Any other source of income your sister has 2. whether she was already filing returns, if so, which return form was being used 3. If Balance Sheet was prepared whether cash on hand was disclosed etc
In my opinion, Alimony paid should not be considered taxable income in the hands of the sister. However doubts will prevail on whether this amount deposited now is indeed the same alimony said to have been received in 2013. The circumstances seem to suggest otherwise.
CAclubindia
