Marriage & Divorce Tax: Alimony, Gifts, Clubbing Rules Explained

• Wedding gifts received on the wedding day are completely tax-free, but tax authorities scrutinize misuse for black money conversion.
• Gifts between spouses are tax-exempt, but income generated from these gifts is clubbed with the donor's income; this rule stops after divorce or death.
• Lump sum alimony payments are considered tax-free capital receipts for the recipient.
• Monthly alimony payments are taxable as ordinary income for the recipient, with no tax deduction for the payer.
• Passive income of a minor is clubbed with the higher-earning parent's income, while income from a minor's talent is taxed as their own.

Why It Matters: It explains how Indian tax laws affect your finances during marriage and divorce.