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rohit sami (CA)     19 October 2012

Tax liablity

Hi

If a girl receives Rs 25,00,000 as settlement for her divorce from her husband then will there be any tax liablity.

If yes then under what section of IT Act.

 

Regards

Sami



Learning

 6 Replies

v.n.muralidharan (tax consultant)     19 October 2012

No.The lump sum of rs 25lacs you have received as divorce settlement is not an income but is a capital receipt. It was held so by the Bombay high court in the case of Princess Maheshwari Devi of pratapgargh vs cit. 147 ITR 258 (bom)

                                                                                                              V N MURALIDHARAN

R RAJAGOPALAN (ADVOCATE)     20 October 2012

 

Query:  If a girl receives Rs 25,00,000 as settlement for her divorce from her husband then will there be any tax liablity.

If yes then under what section of IT Act.

Reply: Divorce Settlement Amount is not 'income'; hence it is not taxable under the Income tax Act 1961.

rohit sami (CA)     21 October 2012

Thanks for your reply. 

dharmesh gupta   14 April 2016

i have been filling return of income of my firms regularily till 31.3.2016 has been also filed but on 31.3.2016 /or 01/04/2016 the firm is disolved now by virtue of retirement of two partners out of three &the remaining partner wish to continue same business as sole properitor wef01/04/2016& wants to surrender PAN CARD WHICH IS NOW SPARED AS THE FIRM IS NOT DO DO ANY BUSINESS IN PARTNERSHIP FROM 01/04/2016ONWARDS.A proper dissolution deed has benn written & signed by all the partners.firm is not having any fixed assets except s.detors very nominal which has been taken over by the remaining sole partner at book value .

how to cacell the pan of firm now,

Please suggest the way..

shall be highly obliged.

C. P. CHUGH (Practicing Lawyer)     25 April 2016

On dissolution of a Firm, a firm is no more required to hold PAN. You may write to jurisdiction AO to cancel/delete the PAN with a copy of dissolution and a copy of PAN.

dharmesh gupta   10 May 2016

Thanks,a lot Mr.Chugh for your reply.

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