Taxability of amount recd. for dissolution of marriage

This query is : Resolved

Sachin Goel (Querist)
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02 July 2013 I need clarification upon the captioned item.
If a lady receives a particular sum, say Rs. 10 lacs, from her in laws for being agreed to divorce her husband;
1. Whether the same will be taxable in her hand as income?
2. If yes, under which provision of Income Tax Act?
3. Whether the lady would be wrong in treating the said amount as Capital Receipt?
Please offer your valuable suggestions.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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02 July 2013 Lump sum received on settlement is not taxable. It is a capital receipt.
.
Our expert Aditya Maheshwari dealt with this issue on the following link in a detailed manner please go through-
.

https://www.caclubindia.com/forum/is-money-received-in-divorce-taxable-80923.asp

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