It is necessary to obtain comprehensive knowledge about alimony before a person considers getting divorced. Go through this blog to get a detailed explanation of the alimony payments in India.
Indian Alimony Laws sums up all the court-ordered payments that must be given to a married partner or ex-spouse as per the divorce agreement. Making necessary payments can also be stipulated at the time of separation.
The primary objective of giving alimony is to ensure the financial stability of the person with a substantially lower income or no income source.
In many countries, this concept is referred to as spousal maintenance. The husband or the wife is required to support their better half monetarily once they decide to part ways.
There are many instances where the wife previously held an employment status but later chose to give up her career owing to child-rearing after marriage. This makes the woman economically dependent on her husband, who continues to excel in his job field at a stable pace even after marriage.
Therefore when such couples decide to end their marital relationship, the divorce significantly pushes the woman towards a detrimental financial condition.
To avoid this injustice, the Indian Government had dictated that the deprived spouse has every right to lead the same lifestyle they previously had access to when they were in a marital relationship. Thus this concept comes into existence. Know Indian Alimony Laws in India for better Understanding.
Understanding The Concept Of Indian Alimony Laws
The amount that a husband or wife needs to pay to their partner and the duration for which this rule must be strictly adhered to is generally dictated by the court based on the length of marital status and assumption of potential incomes of both partners in the near future.
You should note that if a separation or divorce takes place after a marriage relationship period of 10 years, then Alimony is generally awarded; the only exception is when both the partners earn almost the same or possess the same amount of assets or revenue sources.
When their earning potential is asymmetrical, the lower-earning member will likely get a sum. The other person is ordered to pay a fixed amount either temporarily or for the rest of his life. In cases of new marriages, the court may disapprove the claim of money raised by a spouse; also, this benefit is not to be given when both the individuals are employed and earn a decent salary or wages to maintain their previous quality of lifestyle.
You need to have clear Idea of What does Indian Alimony Laws means? One must note that the higher-earning member may be ordered to pay even more after a divorce; these payment stipulations cover noncash property agreements, child support, voluntary payouts or periodic payments that the spouse depends on for maintaining their present residential address. These payments are not included in the alimony payments.
Types Of Indian Alimony Laws
The alimony types vary from one state to another. In India, we commonly come across the following categories of divorce alimony rules payments:
Permanent alimony: The higher-earning spouse is ordered to dispense monthly payments without fail. This duty must be executed without questioning until the lower-earning member remarries or meets death.
Temporary Indian Alimony Laws: This sum must be disbursed to the spouse at the time of separation; this usually covers costs pertaining to divorce procedures and day-to-day expenses of the lower-earning member. Temporary alimony payments are stopped once the divorce gets finalized.
Rehabilitative Indian Alimony Laws: The court orders the financially sound member to help their previous married partner while the other person is trying to restart a new chapter in life by searching for jobs or pursuing education or professional training courses. This type of alimony payment is referred to as rehabilitation support that eventually ceases when the payee can afford their expenses and becomes economically independent.
Lump-sum alimony: A one-time monetary settlement is arranged between the couple when the lower-earning spouse denies receiving any items of value or property rights they rightfully deserve under marital assets.
Reimbursement alimony: These payments are not made at regular intervals. Money is provided to the lower-earning spouse to cover necessary expenses like professional training, tuition fees, etc.
How Is Tax Levied On Indian Alimony Laws Payments?
The Indian Government has revised the regulations concerning alimony payments. For the beneficiary party, alimony sum used to be regarded as a taxable income source according to the IT or Income Tax Division. If we talk about the payer, it is a simple monthly deduction. Now there is no particular policy that defines the alimony’s taxability. The payment type, however, plays a crucial role in this respect.
The alimony amount is considered a major capital receipt when the payer is asked to furnish a lump sum deposit. 1961’s Income Tax law does not make sense. Therefore the jurisdiction cannot define support-generated revenue as an income; thus, no taxes are levied.
Alimony vs Child Support
Child support and alimony are two different elements; thus, the concepts should not apply synonymously. The higher-earning spouse bears support charges to ensure the financial stability of their former partner.
These payments are to be made at the time of separation as well. On the other hand, child support payments get credited to the account of the child’s custodian; this can be any of the parents, depending on the court’s judgment. This payment is intended to cover the expenses of children born during married life or at the time of separation.
As the child becomes 18 years old, this child support is no longer applicable. One should clearly understand that neither of the two duties, whether monthly disbursements of money or child support, cannot be overlooked even if the concerned payer goes bankrupt. You can Know more about the Mutual Divorce Process from our Expert Lawyers.
Conclusion:-
Indian Alimony Laws disbursements are legally mandated financial transfers in India, which an ex-spouse must ensure to provide for their former partner so that the latter person can maintain a decent lifestyle. This system gets activated once the court evaluates that there is a great deal of inequality as far as income is concerned for both spouses.
The payer is warned if they refuse to pay the prescribed sum within monthly deadlines. If he/she continues to stay reluctant, the other party has full right to charge criminal or civil cases against his/her former husband or wife.
Indian Alimony Laws laws have been amended in India to secure the life of a lower-earning member once a marriage gets nullified through a divorce. No tax is charged when the spouse receives a lump sum of money to maintain the lifestyle. To read more about laws regarding alimony, consider Vakilsearch as a solo destination.
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