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.
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.
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.