Tax on Stipend (CA articleship)

I'm working in a mid-sized firm, as far as i know our articleship stipend (C.A.) is exempt from any and all taxes. However, my firm is deducting professional tax from my stipend. Please let me know under which Act and which clause is the stipend exempt. Thanks

Whether the stipend paid to trainee is taxable if taxable under which section or head of income... Stipend may be taxable or may not be taxable based on the fact of the case. First visit the scope of total income which is defined in section 5 of the Act. It says "5. (1) Subject to the provisions of this Act, the total income of any previous year of a person who is a resident includes all income from whatever source derived which (a) is received or is deemed to be received in India in such year by or on behalf of such person ; or (b) accrues or arises or is deemed to accrue or arise to him in India during such year ; or (c) accrues or arises to him outside India during such year " Thus all receipts are taxable unless exempt expressly under the I T Act. Stipend is not expressly exmept under the Act. Thus Stipend is certainly taxable income if it is purely being given in form of cost of living or as wages or salary or for any purpose but studies . However, if the Stipend granted is for furthering education or gaining knowledge , same can be claimed exempt u/s 10[16] of the I T act . In this regard the decision of the Karnataka High Court in A. Ratnakar v. Addl. CIT [1981] 128 ITR 527 can be applied.This was also followed by Tribunal in case of Income-tax Officer v. Dr. G.N. Ramachandran [1 ITD 902]

Dear Amit, Farzan's query is with regard to deduction of Profession Tax(PT) you have narrated him about I.Tax. Dear Farzan, PT is a state Act The PT deduction shall take place if an individual is working in a state which PT law is enacted deduction is applicable for all salary class people and Professional individuals as per the slab applicable.There is no exemption in your case for PT deduction. Rgds Venkatesh Rao

Dear all kindly refer to the case law sudhir Kr sharma v/s ITO in the jipur bench of ITAT in may 1983. in this case the stripend has been expresely excempted from income tax ............if you want the cale law mail me ur email id

Hi sanjay mail me the facts of this case laws everything ... my mail id is amitdaga19 @ yahoo.co.in

Hi dear,

I want to read that case law under which the stipend received from CA firm is exempt.

Can you please mail it to me?

Hoping for your reply.

My email id is

dipsca @ gmail.com

PLEASE FORWARD ME THE CASE LAW

Dear All,

Please sent me the above case law  to my E-Mail ID- harish_ts1984 @ yahoo.com I will be Thank full to All

Dear Sanjay,

Can u pls mail me the case law.

Dear Sanjay,

can u pls mail me the case law. request for ur help