Mutual divorce: How alimony is taxed?
Taxability of alimony payments in divorce: Recurring payments may be taxed, while one-time payments may not be taxed
Me and my wife are going for a mutual divorce. This will be a one-time full and final settlement in addition to payment of monthly maintenance. Will these payments be taxable in her hand? Will I get any benefit from the alimony being paid to her?
There are no clear provisions as regards the taxation of alimony received. There are two types of alimony: a one-time payment and ii) a recurring payment. The court may order payment of one or both types of alimony while passing the divorce decree.