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Is ca articleship stipend taxable??

Krm91 (Student) (782 Points)

30 July 2014

I want to know if the stipend received by us during articleship perios is taxable or exempt u/s 10(16)?

And if it is taxable then under which head of income-salary or income from other sources?

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6 Replies

Dev (Article Trainee.) (608 Points)
Replied 31 July 2014

There is no employee and employer relation is exit.. So cant taxed under Salary.. ( Waise bhi 3 saal ki stipend mila de to bhi exemption limit cross nahi hoti.. Except few lucky articles...)

Krm91 (Student) (782 Points)
Replied 31 July 2014

but is it exempt u/s 10(16) as it is considered to meet cost of education

Vaneet Bansal (learning new things) (106 Points)
Replied 31 July 2014

Hlo manni... Stipend is not exempt hence taxable. It is covered under income from other sources

CA. sanjeet Kumar Ojha (Chartered Accountant) (272 Points)
Replied 31 July 2014

taxable under IOS.

Hemant Pandit (articl assistant) (284 Points)
Replied 31 July 2014

I would like to explain 3 things to you

1. Stipend income generally doesnot exceed BEL.. except in case of Big 4 articles .....

2.Stipend received from a practicing CAfirm is exempt( held in case of sudhir kumar sharma) ... and it doesnot fall under section 10(16)

3. Stipend received during industrial traing is taxcable under IFOS.. if your co.is deducting TDS @ 10% it will go a long way for you.. and ur TDS will be more than ur tax liablity.. so better u get a lower or nil deuction certificate from ITO u/s 197 to avoid refund formalities later on...

hope this clarifies....