Regular maintenance paid to ex-wife is taxable

But, there is no tax on lump sum alimony or transfer of physical assets

For married couples, life is easy as far as taxation goes. If financial or physical assets are transferred from husband to wife or vice versa, there is the clubbing provision of the Income-Tax Act that covers such transactions. But, things tend to get complicated when the couple get divorced. 

“Of late, the funds and assets that exchange hands during a divorce have gone up significantly. Couples are, therefore, trying to ensure that the money and assets transferred attract lowest possible tax,” says Vandana Shah, a lawyer who specialises in divorce cases and is also the founder of the app DivorceKart.