Section 9(1)(iv) Indian Income-tax Act, 1922

Section 9(1)(iv) Indian Income-tax Act, 1922 — the law in short

What the courts have decided on section 9(1)(iv) Indian Income-tax Act, 1922, in one screen. Read this first; open an entry when you need the facts, the reasoning and the source.

• CIT v Sitaldas Tirathdas Supreme CourtHelps department
  A decree makes me pay maintenance out of my income every month. Can I deduct it before I am taxed?
  No, not on these facts. The test is where the obligation bites. If it fastens on the source, so that the amount never reaches the assessee as his income, that is diversion and the amount is not his to be taxed. If it fastens on income he has already earned, it is only an application of his own income, and paying it does not reduce what he is taxed on. A consent decree for maintenance that created no charge on any property fell on the second side of the line.

Listed strongest first: Supreme Court, then High Court, then Tribunal, then CBDT. Nothing here has yet been read in full by a chartered accountant — open an entry to see where it came from.