New Delhi : Divorce settlements often include alimony or maintenance payments — but few people understand how these are taxed under Indian law. According to the Income Tax Act, 1961, the taxability of alimony depends on how it is paid: either as a one-time lump sum or as recurring monthly maintenance.

If alimony is paid monthly, it is generally treated as a revenue receipt for the recipient. Since there is no specific exemption under the Act, such payments may be taxed under the head “Income from Other Sources” as per Section 56. This means the spouse receiving monthly maintenance could have to pay tax on it. Meanwhile, the person paying the alimony cannot claim any tax deduction, as the Income Tax Act does not provide for one.

On the other hand, if alimony is paid as a one-time lump su

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