Permanent alimony of 20 lac is taxable or not ?
alok dubey
(Querist) 01 December 2017
This query is : Resolved
Sir
My sister's husband is ready to give her 20 lac permanent alimony to her and her 13 years old son.
1.sir i want to know is this amount taxable or not?
2.she should take money in which form cash,DD, Cheque?
3.she should accept this money in her name only or she can take some amount in name of 13 years old son which dont have any bank acount no ,pan no.
4.if this is taxable what should be do to save taxes.as this is one time amount she will get for life time and she is not working.
Vijay Raj Mahajan
(Expert) 01 December 2017
Permanent alimony and maintenance by the order of the court to wife and child is not taxable under the Income Tax Act. The payment of maintenance ordered for the minor child can be collected by the mother who is the natural guardian of the minor child. The Bank account of the mother where the amount of Rs 20 lakhs can be deposited is good enough so no new bank account to be opened for minor child.
The payment of the permanent alimony and maintenance made in the Family Court is by Bank Draft or Bank Cheque as the case may be , details to be recorded in the case file, even true photocopy of the same kept as annexure in the court record.
Kumar Doab
(Expert) 01 December 2017
You can benefit from the advise of Mr. Vijay Raj Mahajan.
P. Venu
(Expert) 02 December 2017
Yes, the alimony amount is not taxable, but the interest from the amount deposited in Bank is liable for tax.
Kumar Doab
(Expert) 02 December 2017
Same Query:
http://www.lawyersclubindia.com/experts/Is-one-time-settlement-of-20-lac-maintenance-taxable-income--663621.asp
Dr J C Vashista
(Expert) 03 December 2017
Is it not stupidity to repeat same story?
