Tax ability of stipend

Stipend received as article trainee is taxable under head "Salary".

If the Stipend is for furthering education or gaining knowledge, then the same can be claimed exempt u/s 10(16) of the Income Tax Act, 1961.

Citation : CIT vs Dr. G.N Ramchandran

Regards,

Devendra

Yes, the stipend is taxable under IOS but the expenditure incurred to earn the stipend is allowed as deduction, so in case of CA students the taxable amount is mostly NIL.:(

It is not taxable under head salary because there is no employer employee relationship, the relation is of principal and student....

& Stipend received by CA Student is not exempt u/s 10(16) as it is not received as scholarship but received to meet the cost of travelling and other expenses related to articleship...

Dear Armaan, your query is resolved now..

thanks for ur reply 

@ SSG

how it is taxable under the head salary ?

as there is no employer employee relationship .....

Articleship Stipend is exempt from tax...

@  CA. Arpita Singhal

under which section it is exempted

refer dr rahul tugnait case 2009, itat chandigarh. all stipends are exempt

Refer the case law:

Dr. Rahul Tugnait. Versus Income-Tax Officer. - Tribunal

Scholarship ....
..... granted by Scientific Research and Cultural Affairs Ministry-Out of the fellowships awarded under technical teachers training programme by the Ministry of Scientific Research and Cultural Affairs an amount of Rs. 250 per month (representing the cost of education) may be treated as exempt from income-tax-Circular No. 11(XXIII-24) [F. No. 27/67/60-IT(A-1)], dt. 4th April, 1961. Viewed from aforesaid different angles and facts of the present appeal, it can be said that the scholarship/stipend, received by a student from college/Government for pursuing higher studies, cannot be termed as salary, therefore, this appeal of the assessee is allowed.

it is not taxable under the head salary and another one thing is under ICAI Rules upto 1500/- in pm so only 18000 as a income of stipend so its not taxable in the   Income Tax  slab rates.

i fully agree with Bansal

Originally posted by : Vikas Bansal
	Refer the case law: Dr. Rahul Tugnait. Versus Income-Tax Officer. - Tribunal Scholarship .... ..... granted by Scientific Research and Cultural Affairs Ministry-Out of the fellowships awarded under technical teachers training programme by the Ministry of Scientific Research and Cultural Affairs an amount of250 per month (representing the cost of education) may be treated as exempt from income-tax-Circular No. 11(XXIII-24) [F. No. 27/67/60-IT(A-1)], dt. 4th April, 1961. Viewed from aforesaid different angles and facts of the present appeal, it can be said that the scholarship/stipend, received by a student from college/Government for pursuing higher studies, cannot be termed as salary, therefore, this appeal of the assessee is allowed.

not available to CA students unless its paid by university/any govt body, 

so the amount paid by CA firm is taxable. 

Yes, the stipend is taxable under IOS but the expenditure incurred to earn the stipend is allowed as deduction, so in case of CA students the taxable amount is mostly NIL.:(

It is not taxable under head salary because there is no employer employee relationship, the relation is of principal and student....

& Stipend received by CA Student is not exempt u/s 10(16) as it is not received as scholarship but received to meet the cost of travelling and other expenses related to articleship...

Fully agree from ritesh

it is exempt u/s 10(16).

refer the case law