Stipend

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

24 July 2010 Stipend received by doctor is taxable or not taxable?If taxable under which head?

Also a doctor whose professional income is exactly 1000000/-.Doe his book require to be audited?

Aditya Maheshwari

Aditya Maheshwari (Expert)

24 July 2010 It should be taxable under the head income from other sources.

If receipts exactly Rs. 10 lakhs then no tax audit as for audit receipts should exceed Rs. 10 lakhs.

Querist : Anonymous

Querist : Anonymous (Querist)

27 July 2010 I feel as per section 10(16) and various case studies in in query section says stipend is not taxable.So just wanted to have a confirmation.

Aditya Maheshwari

Aditya Maheshwari (Expert)

27 July 2010 The case law is of Sudhir Kumar Sharma (1983) 15 Taxmann 100 of ITAT Jaipur Bench which states that stipend received by CA student is exempt.

In the case law there is mention that the same is applicable before introduction of rule 32B prescribing the minimum stipend rules was prescribed by the Institute which do not follow the follow the practice of paying a meager amount to meet the cost of books, fees, etc and hence cannot be termed as receipt for the purpose of meeting the cost of education to be exempt u/s 10(16).

Stipend is taxable as the case law mentioned is not relevant anymore. So please reply taking into account the facts of the old case which are distinguishable currently.

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