All You Need to Know about Taxation on Alimony
With divorce comes hand in hand another concern known as Alimony and its taxability. While divorce is the legal method of putting a relationship to an end, usually monetary compensation is provided to the financially weak party by the financially stronger one for them to maintain the same standard of living after separation. The term used for such compensation is “Alimony” which is a legal obligation in most countries. In our country alimony is governed according to the personal laws and the provision of the Special Marriage Act. Another law regarding alimony is laid down in section 125 CrPc. It talks about alimony rights to wife given by the husband. Section 125, along with several other alimony rights, grants the right of Interim maintenance also. The Supreme Court in several of its judgment has made it clear that interim maintenance can be awarded before the final disposal of a case. Though there is no specific provision in the Code regarding interim maintenance judicial activi