Please answer this
rakesh
(Querist) 12 March 2010
This query is : Resolved
Please answer this
a) What is the taxability of alimony received from ex-husband under mutual settlement
b) What is the taxability for income earned on FD for the minor son from ex-husband towrads his maintanence under mutual settlement
regards
Raj Kumar Makkad
(Expert) 12 March 2010
a). There is no tax liability against permanent alimony received from divorcee husband in hte given case.
b). Same is position in second case.
Kumar Thadhani
(Expert) 12 March 2010
ASSUMING YOU DO NOT HAVE ANY OTHER INCOME OTHER THAN INTEREST FROM F.D. RECEIEVED FROM YOUR EX-HUSBAND IF IT EXCEEDS Rs 1,80,000/=in fianancial year for 2010-11 .Your tax liability is nil.
Vineet
(Expert) 12 March 2010
The alimony received on annulment of marriage as a lump sum payment under a court decree has been held to be capital receipt by the court in the case of Princess Maheshwari Devi of Pratapgarh Poona 147 ITR 258 (Bombay). However in this case the alimony received is under mutual consent, the revenue authourities may differentiate the facts and treat the same as gift in the hands of wife. Under the current position of law, any gift received post annulment of marriage is taxable as income from other sources in the hands of receipient.
Coming to second question, there is no exemption of interest earned on FD. The interest shall be clubbed with the income of parent having higher income (in case of single parent, the parent) and taxed in the hands of such parent. An exemption of Rs 1500/- per child is available under the Act.
