Alimony taxable


Hello,

just a very simple question.....is alimony taxable? Either lumpsome or if lumpsome is not affordable, then in installments for 24 months? Is that Taxable?

Is mantainence for the child taxable?

Please advise as nobody can really shed light on this...even lawyers have conflicting opinions.

Thanks

 
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Since the alimony or maintenance of child are being paid out of the income of spouse which is taxable in the hands of the spouse , it is not further taxable in the hands of receiver.

 
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Dear Sir,

many thanks for your reply. My spouse has NRE status and hence I had this question. would I still need to pay tax on the child support?

Also this amount is wholly for the maintanence of the child and not towards my upkeep.

 
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Legal Consultancy/Advocate

Hi,

    Please note, if it is not taxable in the hands of the receiver which is you, atleast the interest earned on this income is taxable and you cannot avoid this taxation. For eg, if you make a fixed deposit of Rs.100000 out of the amount received then the interest earned out of that FD of Rs100000 is certainly and 100% TAXABLE. You would not have to pay specifically for Child support but yes if  amount is over taxable limit in general then you HAVE to pay Tax.

 
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The amount given for child support is not taxable in your hands, however if this amount or any portion of it is invested and any income is earned as interest it will be taxed within the taxable limit. It is therefore suggested to invest any surplus in mutual funds whose dividends are tax free.

 
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upon receiving lumpsome maintainence does a minor child need to apply seperately for income tax or is that clubbed with the income of receipient parent , that is  who has custody of the child after divorce.

does a child need a seperate  pan card to file a return 

 
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