Rebate on maintenance paid to wife
Querist :
Anonymous
(Querist) 19 August 2015
This query is : Resolved
I am a govt employee. Under sec 125 I am paying maintenance to my wife and child. Is there any tax relief on the amount paid to my wife as per court order.
Guest
(Expert) 19 August 2015
Anonymous and No Reply
SAINATH DEVALLA
(Expert) 20 August 2015
The effect of separation on each spouse's tax liability depends chiefly on whether there are any maintenance payments involved and, if so, whether these payments are made under a legally enforceable arrangement or not.
If maintenance payments are made, for the benefit of a spouse, under a legally enforceable arrangement during the year in which the couple separates then:
The spouse who makes the payments is entitled to a tax deduction for the payments
The spouse to whom the maintenance is paid is taxed on the payments.
Where a couple separates and no maintenance payments are made, each spouse is taxed as a single person and is responsible for filing his/her own tax return and paying tax on his/her own income.
Tax treatment of voluntary maintenance payments
Voluntary maintenance payments (i.e., payments that are not legally enforceable) are not taken into account when calculating either spouse's tax. This means that:
The spouse who makes the payments is not entitled to a tax deduction for them
The spouse who receives the payments is not taxed on them
Both spouses are taxed on their own income as single people.
Where a spouse:
Makes voluntary maintenance payments to the other spouse
and
Is not entitled to a tax deduction for the payments because they were not made under a legally enforceable arrangement
and
The payments are sufficient to either wholly or mainly maintain his/her spouse,
he/she will qualify for the married person's tax credit but only the single person's standard rate cut-off point is due. The other spouse can also claim the single person's tax cr edit against his/her own income (if any).
"Mainly Maintaining" means that the payer's maintenance payments exceed the recipient's income.
Though an anonymous author I have supplied him the material at my disposal.
K.S.Srinivas
(Expert) 20 August 2015
Consult a Tax Consultant.
Guest
(Expert) 20 August 2015
Perfectly Attended by the Senior Mr.Sainath Devalla
Anirudh
(Expert) 20 August 2015
The amount of maintenance being paid by you to your wife is neither exempt from income tax, nor allowable as deduction while computing the income liable to income tax.
SAINATH DEVALLA
(Expert) 21 August 2015
Mr.Anirudh,
The extract I have given is not my own but from the Income tax laws after throughly going through.So better visit income tax site and come to a conclusion,instead of contrasting statement,instead of confusing the querist.
V R SHROFF
(Expert) 21 August 2015
Anonymous Query
pl never reply...
Anirudh
(Expert) 21 August 2015
Dear Mr. Sainath Devalla,
Thanks for your post.
I never indulge in contradicting anybody for the sake of contradiction.
I am not sure where from you extracted. If possible please give the link to enable me to go through.
However, please be assured that, there are two concepts in Income Tax - Diversion of Income and Application of Income.
If, by a Court order, anybody's income is attached, then that portion of the income never reaches the hands of the assessee and the assessee cannot even touch it, it is called 'diversion of income' and the same is not included in his total income and consequently goes without tax.
However, if the Assessee receives his income, and then makes the payment towards maintenance etc., even as per Court orders for payment of maintenance, then it is called 'application of income' and is always included in the total income and taxed and no deduction is allowed.
My above information is fully backed by Supreme Court decisions. In case you are interested, I will make available those decisions.
As requested, please indicate the link from where you extracted the information supplied by you, so that I can visit the link for my knowledge updation.
SAINATH DEVALLA
(Expert) 21 August 2015
U are an advocate and find it for urself
Anirudh
(Expert) 21 August 2015
In that case, if you have anything legally concrete to differ from me, please do so.
Otherwise, I stand by my views.
Now I hope you will appreciate that more than one view is possible on a point. I am speaking from the strength of SC decisions and therefore was not indulging in contradicting you for the sake of contradicting.
SAINATH DEVALLA
(Expert) 21 August 2015
I leave it to the fate and wisdom of the querist to act.
Anirudh
(Expert) 21 August 2015
Am I to take that you do not have anything legally to differ from my views (other than the website information which you say you extracted)?
Guest
(Expert) 21 August 2015
Dear Mr.Sainath Devalla The Anonymous Persons Would Go To Any Extent To Insult.Other Thread They Had Used "You Fellows" to Many Seniors Also which you should be Aware.There are No Contact Details and Being Anonymous they think they are Safe.Please Better Ignore Them and Leave them to Me.
Guest
(Expert) 21 August 2015
Yes Good Morning Miss/Madam /Mr Anuradha/Anirudh How could I Help you Please.Do Not Mistake Dear No Details of Your Self Is Available Please.
Querist :
Anonymous
(Querist) 21 August 2015
Respected sir/Madam
This query is posted by me and it was by mistake that I tick for the anonymous. There is no chance of making misuse of information's provided by you all.
I am an Indian Army soldier and am paying maintenance to my wife from the past many years.
Please reply to my query and suggest the income tax law under which it is covered.
