New Home Forums Alimony Is alimony taxable?

1 reply, 2 voices Last updated by  Charusheela J. Nalhe 3 months, 1 week ago
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  • #2876

    KHYATI AGRAWAL
    Participant
    @KHYATIAGRAWAL

    Is alimony taxable?

    #2921

    Charusheela J. Nalhe
    Participant
    @charunalhe

    Monthly payment: Alimony in the form of monthly or quarterly payment is treated as revenue receipt and taxed in the hands of the receiver. It is added to her total income and taxed as per the tax bracket. No deductions available for the payer.

    Lump sum settlement: This type of alimony is treated as capital receipt and hence is tax-free.

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