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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    Is alimony taxable?


    Charusheela J. Nalhe

    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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