Whether Stipend received by Articles is taxable?

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Bhavesh Mehta (Querist)
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12 February 2011 Hello friends

I would like to know whether the stipend received by articled assistants during their articleship is taxable or no? If yes under what head and why?

Regards

CA. Lohith Jagadeesh

CA. Lohith Jagadeesh (Expert)
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12 February 2011 Hi,
What is the Amount of Stipend ur getting???

will be able to answer it better if the Info was passed on.

Thank You,

Regards
CA. Lohith. J
B.Com,ACA,CS,(ICWA),SAPM Hons,ITF Hons

CA Shailesh Kumar Bhagat

CA Shailesh Kumar Bhagat (Expert)
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12 February 2011 Stipend is txable income. If the amount increases the exempted tax limit, tax will be applicable.

Bhavesh Mehta

Bhavesh Mehta (Querist)
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12 February 2011 It is above the basic exemption limit for an individual.

Bhavesh Mehta

Bhavesh Mehta (Querist)
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12 February 2011 Thank You, but it is taxable under salary or other sources?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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12 February 2011 Under Income from Other Sources.

CA. Lohith Jagadeesh

CA. Lohith Jagadeesh (Expert)
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12 February 2011 Hi,
Since there is no Employer & Employee relationship between the Principal & the trainee, it cannot be taxed under the head "Income From Salaries".

Therefore the only other head which it can be taxed is "Income From Other Sources".

However even if purse it is taxable u/h "Income from Other Sources", it has to cross the Basic Exemption Limit
(Apart from other Incomes of the Assessee {if any }), only then it shall be taxable.

Hope i have Resolved ur Issue,

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Thank you,

Regards
CA. Lohith. J
B.Com,ACA,CS,(ICWA),SAPM Hons,ITF Hons

Bhavesh Mehta

Bhavesh Mehta (Querist)
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13 February 2011 Thanks to all..

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