If a woman receives any amount from her ex-husband, after divorse, as per the orders of the court, will that amount be liable to tax?
Please advise.
In the case of Princess Maheshwari Devi of Pratapgarh v. CIT, (1984) 147 ITR 258 (Bom.), the Bombay High Court, monthly alimony, being a regular and periodic return from a decree, would be taxable. But a lump sum payment received was held to be a capital receipt and, hence, not taxable for the recepient. This decision does not deal with assets transferred as a part of the separation.
For the spouse paying the alimony, there is no provision under the tax laws enabling him to claim a deduction towards such payment from his income.
After divorce, any asset transferred to the former spouse without consideration, would be a gift from a non-relative and would have tax implications for the recipient spouse.
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