Tax liablity

No.The lump sum of rs 25lacs you have received as divorce settlement is not an income but is a capital receipt. It was held so by the Bombay high court in the case of Princess Maheshwari Devi of pratapgargh vs cit. 147 ITR 258 (bom)

                                                                                                              V N MURALIDHARAN

Query:  If a girl receives Rs 25,00,000 as settlement for her divorce from her husband then will there be any tax liablity.

If yes then under what section of IT Act.

Reply: Divorce Settlement Amount is not 'income'; hence it is not taxable under the Income tax Act 1961.

Thanks for your reply. 

i have been filling return of income of my firms regularily till 31.3.2016 has been also filed but on 31.3.2016 /or 01/04/2016 the firm is disolved now by virtue of retirement of two partners out of three &the remaining partner wish to continue same business as sole properitor wef01/04/2016& wants to surrender PAN CARD WHICH IS NOW SPARED AS THE FIRM IS NOT DO DO ANY BUSINESS IN PARTNERSHIP FROM 01/04/2016ONWARDS.A proper dissolution deed has benn written & signed by all the partners.firm is not having any fixed assets except s.detors very nominal which has been taken over by the remaining sole partner at book value .

how to cacell the pan of firm now,

Please suggest the way..

shall be highly obliged.

On dissolution of a Firm, a firm is no more required to hold PAN. You may write to jurisdiction AO to cancel/delete the PAN with a copy of dissolution and a copy of PAN.