Tax on articleship stipend
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
03 July 2011
Is articleship stipend to a CA student taxable under the head Income from Other Sources?
03 July 2011
The stipend is exempted from tax. Kindly go through the following Section 10(14) & 10(16)
An article clerk is not an employee and hence the payment made to him is not taxable as salary
10(14) (i) any such special allowance or benefit, not being in the nature of a perquisite within the meaning of clause (2) of section 17, specifically granted to meet expenses wholly, necessarily and exclusively incurred in the performance of the duties of an office or employment of profit, [as may be prescribed], to the extent to which such expenses are actually incurred for that purpose ;
(ii) any such allowance granted to the assessee either to meet his personal expenses at the place where the duties of his office or employment of profit are ordinarily performed by him or at the place where he ordinarily resides, or to compensate him for the increased cost of living, [as may be prescribed and to the extent as may be prescribed]
Provided that nothing in sub-clause (ii) shall apply to any allowance in the nature of personal allowance granted to the assessee to remunerate or compensate him for performing duties of a special nature relating to his office or employment unless such allowance is related to the place of his posting or residence
10(16) scholarships granted to meet the cost of education;
An article clerk is not an employee and hence the payment made to him is not taxable as salary
10(14) (i) any such special allowance or benefit, not being in the nature of a perquisite within the meaning of clause (2) of section 17, specifically granted to meet expenses wholly, necessarily and exclusively incurred in the performance of the duties of an office or employment of profit, [as may be prescribed], to the extent to which such expenses are actually incurred for that purpose ;
(ii) any such allowance granted to the assessee either to meet his personal expenses at the place where the duties of his office or employment of profit are ordinarily performed by him or at the place where he ordinarily resides, or to compensate him for the increased cost of living, [as may be prescribed and to the extent as may be prescribed]
Provided that nothing in sub-clause (ii) shall apply to any allowance in the nature of personal allowance granted to the assessee to remunerate or compensate him for performing duties of a special nature relating to his office or employment unless such allowance is related to the place of his posting or residence
10(16) scholarships granted to meet the cost of education;
03 July 2011
Stipend is given to the articled assistant to pursue his / her education. So, it can be tax free in view of the following decisions-
If the Stipend granted is for furthering education or gaining knowledge , same can be claimed exempt u/s 10[16] of the Income tax Act,1961 . 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 the case of Income-tax Officer v. Dr. G.N. Ramachandran 1 ITD 902.
If the Stipend granted is for furthering education or gaining knowledge , same can be claimed exempt u/s 10[16] of the Income tax Act,1961 . 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 the case of Income-tax Officer v. Dr. G.N. Ramachandran 1 ITD 902.
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Refund Annexure-B
- TDS Claim year
- Liable to deduct tds and 44ADA
- Refund of 20%pre-deposit paid for stay application
- Nomination of Bank for refund in itr 2
- Section 56(2) of the Income tax Act 1961 , Gift to relative .
- TDS Challan Code
- CCFS 2026 Schemed
- ECO SUPPLY REPORTIONG IN GSTR-1
- ASISSE return under the provisions of the Collection of Statistics Act, 2008 (7 of 2009)
- House Property Reporting in ITR
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
