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is stipend taxable or not (Income Tax)

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This query is : Resolved



( Author )
25 May 2008

dear friends,
i am doing articleship and getting stipend of Rs 10000 pm and other interest income of Rs 100000 per year. my question is whether stipend is taxable and if taxable under which head it is taxable and if exempt plz tell me relevent section of IT act.


S.Srinivasaraghavan

( Expert )
25 May 2008

It is taxable as other income


Kaustuv

( Expert )
26 May 2008

if it is not specifically exempted under section 10, it will be taxable.. now stipend incoem is not exempted under section 10.. so it will continue to be taxable as "income from other sources" u/s 56.


R.V.RAO

( Expert )
26 May 2008

I AGREE WITH HE ABOVE VIEWS.
R.V.RAO


Manish Agarwal

( Expert )
26 May 2008

Hi Amit,

I don't agree wd d above views. According to me Stipend income is not taxable. This is because there is no specific section under the act under which such income can be held as taxable. In the words of the Hon'ble Apex Court merely bcoz income is not asessable under the preceding heads of income it can not be taxable under the head other sources.There are a no. of supreme court verdicts which uphold the above principal, one of them is Nalinikant Ambalal Moody. If u want i can give u the exact citation.


CA Amit Agrawal

( Author )
26 May 2008

i am little bit confused, Mr Manish as per my knowlege only scholarship is exempt as per Supreme court decision. plz throw more light on it. waiting for reply


CA Amit Agrawal

( Author )
26 May 2008

i am little bit confused, Mr Manish as per my knowlege only scholarship is exempt as per Supreme court decision. plz throw more light on it. waiting for reply


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