LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Learning

 1 Replies

Ishaan   22 March 2021

There is no specific provision of the Income Tax Act, 1961, that governs the taxability of alimony. The taxability of alimony all boils down to how the payment is made. Past judgments in various scenarios have also helped us gain a better understanding of the same.
– In case of a lump sum payment of alimony: Here, the alimony is treated as a capital receipt, and therefore, the provisions of the Income Tax Act, 1961 do not apply. Hence it is not treated as income and is not taxable.
– In case of recurring payments of alimony: Alimony, in this case, is considered as a revenue receipt. Therefore, it is treated as income that is taxable in the hands of the recipient.
Nevertheless, it needs to be noted that the person who makes the payment of alimony may not claim any sort of deduction against the same.


Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register