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Divorce settlement

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Can I claim deductions for amounts paid to -

1) Ex-wife for a court mediated divorce settlement; and

2) Minor child for his living expenses (who will stay with the ex-wife)

If so, can you advise which section of ITA will apply and the amount(s) that can be deducted / claimed.

Thanks

Replies (2)

Quick Summary

This discussion explores whether payments made as part of a divorce settlement to an ex-wife, or for a minor child's living expenses, are tax-deductible under the Income Tax Act. The consensus suggests that such expenses are generally not deductible as they are considered an application of income rather than an expense incurred for earning income.

Bhavin Shah

Chartered Accountant

501 Points Posted on 30 June 2020

I dont think such expenses are allowed as deduction....its not incurred for earning any income....

It will be treated as application of income

CA Raj Doshi

Practising CA

5649 Points Posted on 01 July 2020

Https://m.businesstoday.in/story/alimony-after-divorce-time-of-payment-governs-taxable-or-not/1/192710.H T M L

Both the payments are not deductible under Income Tax Act

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