Consideration to live apart - Taxability on Payer
Querist :
Anonymous
(Querist) 16 January 2014
This query is : Resolved
Hello,
I have to pay my wife Rs 10 lakhs as consideration for divorce and then we will be filing an application for divorce with 'mutual consent'.
Now I want to know following things,
1. I will have to generate this cash in my books of accounts. What is the Income tax implication. To be precise 'WILL I HAVE TO PAY INCOME TAX ON SUCH 10 LAKHS AS IT WILL BE GENERATED THROUGH MY INCOME FOR CURRENT YEAR.? OR Will this consideration to live apart is eligible expendicture and hence will be allowed for income tax purpose.?
In short shall I pay this amount in black or in white..
2. What is the safest way to pay this amount so that if my wife bakes out from 'mutual consent' , I can atleast get my money back..
Please reply soon..
Its urgent nd serious too..
Thanking you in advance..
S.QAISAR ALI ADV.
(Expert) 16 January 2014
of course it accountable ,and through cheque and through mediation cell.
Dr J C Vashista
(Expert) 17 January 2014
Mr./Ms. anonymous,we donot respond to anonymous querist, however,
1. Contact your lawyer.
2. Pay either way in Court, get it recorded in the order sheet of the Court.
3. You cannot recover if she do not turn up/backs out from her consent.
R.K Nanda
(Expert) 17 January 2014
NO REPLY TO AQ.
ajay sethi
(Expert) 17 January 2014
anonymous query
Querist :
Anonymous
(Querist) 17 January 2014
WHAT ABOUT INCOME TAX PART OF IT.?
Querist :
Anonymous
(Querist) 17 January 2014
Those who dont want to reply need not write "No reply"
If you dont reply to anonymous query, why the hell you have kept the option to ppst query as anonymous.?
Either reply something which is helpful to me or els dont reply please..
T. Kalaiselvan, Advocate
(Expert) 17 January 2014
If it has been decided not to answer anonymous queries, it will remain, disclose yourself before asking any query.
Querist :
Anonymous
(Querist) 19 January 2014
All these replies are useless.
I have got a clear cut answer from my C.A.
1. Alimoney paid at lum-sum is not tax deductible under any head of income nor there is any other section allowing it as deduction from total income.
2. Alimoney is not taxable in the hands of Receiver if it is one time. and if it is monthly, It is taxable in the hands of the receiver.
So the query has been resolved for me and I am writing this post for needy people like me.
With NO-Thanks to So called Experts,
Yours Truly,
Anonymous
R.V.RAO
(Expert) 23 January 2014
IF ONE HAS SUFFICIENT BOOK BALALNCE ie MONEY IN BOOKS ACCOUNTS,ONE MAY PAY BY CHEQUE. BUT NO TAX DEDUCTION ALLOWED UNDER AND SECTION.
IF ONE HAS NO BALANCE in books of accounts,loan may be raised and shown as loan reced. in books and still pay the amount by cq.still no tax deduction.
if there is no balance in books to issue cq. and also if there is no recourse to loan,cq. isuue ruled out.
only alternative is cash payments .but lakhs of cash payments will be not only allowed as exp but may even be added up as income not accounted to the income already shown in tax return.
out of court settlement after court decides the amount of compensation is not possible,unless either or both parties go for appeal against quantum of compensation.
