Amount received after divorse

 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.