Divorce & Marriage Tax: Gifts, Alimony, Child Income Rules Explained

• Wedding gifts received by the bride and groom on their wedding day are tax-exempt, regardless of the amount; gifts to relatives are taxable.
• Gifts between spouses are tax-exempt, but income generated from these gifts is clubbed with the higher-earning spouse's income until divorce or death.
• Passive income of minor children is clubbed with the higher-earning parent's income (with a ₹1,500 exemption per child), unless earned through the child's own work or if the child is disabled.
• Lump sum alimony received after divorce is tax-free, while monthly/periodic alimony is generally taxable; the alimony payer receives no tax exemption.

Why It Matters: Understand how marriage, divorce, gifts, and alimony impact your tax bill.