High-profile Indian cricketer pays ₹4.75 crore alimony

Alimony, also known as maintenance, is financial support one spouse provides to the other during or after a divorce. Its main goal is to help the less financially stable spouse maintain a decent standard of living after the separation. A recent high-profile case includes cricketer Yuzvendra Chahal, who paid Rs 4.75 crore in alimony to choreographer Dhanashree Verma after their divorce. In India, whether alimony is taxable depends on how it is paid. If it is paid as a lump sum, it is not taxable for the recipient. However, if it is given as regular payments, it is treated as income and is taxable. For the payer, regardless of the payment type, these payments cannot be deducted from taxes. Transfers of assets as alimony also have different tax treatments. Before a divorce, such transfers are typically exempt from tax. After the divorce, however, transfers exceeding Rs 50,000 may be taxable for the recipient. The amount of alimony is determined by several factors. Courts look at the income and financial status of both spouses, including their assets and liabilities. They aim to help the dependent spouse maintain a similar lifestyle to what they had during the marriage. The duration of the marriage, the age and health of each spouse, and child custody arrangements also play significant roles in deciding the amount. Additionally, the contributions each spouse made during the marriage and any misconduct may affect the court's decision. Legal provisions for alimony in India are outlined in various acts. The Hindu Marriage Act and the Special Marriage Act have specific sections addressing maintenance, while the Criminal Procedure Code allows spouses to seek maintenance regardless of religion. Husbands can receive alimony in India if they are financially dependent. Courts have ruled in favor of husbands in the past, highlighting the importance of financial dependency. Alimony payments can be modified or stopped but require court approval. If the recipient remarries, they typically lose eligibility for alimony. Similarly, if the paying spouse suffers financial hardships, they can request a modification or halt to the payments.