Stipend during training period
This query is : Resolved
01 March 2009
Dear All,
Kindly solve this query.
Stipend which we get during our Articleship period is taxable under the Income Tax Act or not?
Regards,
Pramod.
Kindly solve this query.
Stipend which we get during our Articleship period is taxable under the Income Tax Act or not?
Regards,
Pramod.
01 March 2009
normally its taxable but if Stipend is for further education or gaining knowledge i.e. in nature of scholarship (meeting the cost of education) than its exempt u/s 10[16] of the I T act. it can b claimed as exempt income.
01 March 2009
As per Jaipur Bench of Tribunal in Sudhir Sen case, it is not taxable.
01 March 2009
Stipend is not taxable.
01 March 2009
Normally, it is taxable.
Its exempt if conditions of sec.10(16) are satisfied.
Its exempt if conditions of sec.10(16) are satisfied.
01 March 2009
The case referred by Mr.Chopra is Sudhir Kumar Vs. ITO (1983) 17 TTJ (Jp-Trib) 228.
01 March 2009
Ms.Devanshi, the Madras High Court in CIT Vs. V.K. Balachandran's case reported in (1984) 147 ITR 4 deceided that the whole amount of scholarship received need not be spend for claimimg exemption u/s 10(16).
02 March 2009
form in which scholarship is received is important and not its application to claim exemtion U/S 10(16).i.e it should be related to education and nt in the form of salary or anyother.
02 March 2009
Good discussion. Thanks to Warrier Sir and Ms. Devanshi for our updations. But what is the ultimate solution. Is the articleship stipend taxable or not? And please let us know what is the decision in SUdir Kumar Vs ITO case.
02 March 2009
Thanx for all ur discussions bt my query is not resolved in all this.
Please reply.
Please reply.
02 March 2009
I think their discussion indicates that articles stipend is taxable as it is not for further education, as explained by Ms. Devanshi in her first reply.
02 March 2009
its exempt if object is to meet cost of education i.e. if it is paid only for meeting the cost of education, even if its not spent. the exemption in the hands of recipient depends on what it is meant for the person paying or distributing the scholarship. now question is Stipend which we get during our Articleship period is to meet cost of education ???? what the CA Act says about this??
02 March 2009
http://www.taxworry.com/2006/11/stipend-may-or-may-be-tax-free.html
12 March 2009
https://www.caclubindia.com/experts/experts_message_display.asp?group_id=142706
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