stipend Whether taxable or not

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Ankit kansal (Querist)

03 May 2008 Dear sir,
I have a quarry about taxability of stipend.
An indivisual Mr A is under training & getting Rs 30000/- Pm as stipend.
Now i want to ask that whether such sum is taxable in the hand of trainee.If taxable then under which head it will cover and whether trainer is liable to deduct the tax (TDS) on such sum. Plese email me the answer at "ankit740@gmail.com"
Thanking You
Ankit kansal

CA. Yayati Tyagi

CA. Yayati Tyagi (Expert)

04 May 2008 In my opinioin, stipend is nothing but salary paid to person which is not a permanent employee. Treatment should be done like salary.

Amit Sharma

Amit Sharma (Expert)

05 May 2008 I agree with Yayati.

Sindhu

Sindhu (Expert)

05 May 2008 But you can always claim exemption u/s 10(16) of the income tax act. Though it is like salary the relationship is not that of Employer & employee. It is tat of Apprenticeship and is governed by that .... So you can claim exemption under that.TDS need not be deducted acc to the sec refered by me.

CA. Yayati Tyagi

CA. Yayati Tyagi (Expert)

13 May 2008 hi Sindhu,

did you refered this section?

section 10
(16) scholerships granted to meet the cost of education

i don't think it is relevant here.