Compensation to wife

This query is : Resolved

Vaibhav (Querist)
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01 September 2014 Is lum sum Compensation received by a wife from her husband during the proceeding of divorce at the women cell is taxable?

Please provide sections supporting.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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01 September 2014 no it is exempted from clubbing and its a capital reciept so not taxable

Vaibhav

Vaibhav (Querist)
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01 September 2014 Same would be case if compensation is given mutually?

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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01 September 2014 only on divorce it takes colour of capital recipts and not in case of voluntary for non divorce cases.

Vaibhav

Vaibhav (Querist)
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01 September 2014 I have read somewhere that only if the court is involved in the proceedings then only it is exempt. But here only women cell is involved.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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01 September 2014 but then whther there is divorce confirmed or not?

Vaibhav

Vaibhav (Querist)
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01 September 2014 Yes divorce is confirmed it may take 6 months time
And 50% compensation will be received now and rest on signing of the papers

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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01 September 2014 thenits fully not taxable but suppose if divorce not granted then 1 st installment paid will be taxable

Vaibhav

Vaibhav (Querist)
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01 September 2014 Can you provide me the section under which it is exempt?

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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01 September 2014 its not taxble as its capital receipt u can check under income from other sources

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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01 September 2014 u can refer to definition of income u/s 2(24) where there is no income as per income tax act

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Compensation to wife

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