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RThe money is already tax deducted in the husbands hands and the divorce case is pending judgment. Logic dictates that monthly expenses from the spouse is excluded as per the IT act but there are a few very confounding judgments regarding this matter and the opposite side is using it as a way of harassment.
The courts are of the view that monthly maintenance when given by judgment/order/decree falls under revenue receipts and with a legally enforceable ‘source’ hence falling under definition of ‘income’ which is not excluded.
The above reasoning has also been applied to alimony received by way of monthly payments while a lump sum is considered a capital receipt and therefore not taxable.🤯🤯
What is confounding is that the system is not only creating a case of double taxation, but penalising those who cannot afford a lump sum settlement and have to rely on monthly payments.
Regarding the present case at hand, my mom is going through a divorce case since 2012. Maintenance order came in 2016 and family court judgment in her favour(no divorce, enhanced maintenance and arrears) in 2023 jan.
Her husband appealed in the high court where the matter is now pending.
Shes a home maker and her returns from FD etc has always been less than 2L so she didnt file ITR (we were advised its not obligatory). But now the opposite side is arguing that since her yearly maintenance has been above 7L she had to pay tax. Can someone please advice?!!
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