Alimony receipts

This query is : Resolved

P.Madhivadhanan (Querist)
Follow

23 September 2025 Money received by wife from husband through her mother in law by out of court settlement and it is shown as evidence in court as a settlement and the proof to be given to the court. The amount received by wife is taxable or not and the money is deposited by her mother in law in Bank whether that amount is TDS deductible?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

23 September 2025 One-time lump sum payments from the husband (including routed via mother-in-law) received under family settlement or as alimony are treated as capital receipts and are not taxable in the wife's hands under the Income Tax Act, 1961.

Regular, periodic alimony payments (e.g., monthly allowance) are classified as income and become taxable under the Income Tax Act in the hands of the wife, under the head "Income from Other Sources".

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

23 September 2025 There is no requirement for Tax Deducted at Source (TDS) on amounts paid by a mother-in-law to a daughter-in-law/heir under family settlement since such payments are not considered as “income” or taxable perquisites.

TDS provisions would apply only if the payment was part of a taxable transaction (business/profession perquisites or regular income) which is not the case in family settlement scenarios.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

23 September 2025 Written documents, bank statements, and settlement agreements can be submitted in court as corroborative evidence even without registration, providing proof of such arrangements and their non-taxable status for family settlements.

Thus, one-time settlement or gift received by a wife from her husband through her mother-in-law is not taxable under Indian law, and there is no requirement for TDS deduction on this amount; proper documentary evidence should suffice as court proof.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
Follow

24 September 2025 Good Luck...

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

velichety.l.narasimharao

Akhila Ajayan

Amit Bagla

GIRISH K SATTI

Ravi

Subscribe Now

Alimony receipts

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Accountant

GST CONSULTANT

Article Assistant

Manager- Finance and Compliance

CA Final

GST CONSULTANCY