Difference between salary & stipend

TREATEMENT OF BOTH STIPEND( IN UR CONTEXT) AND SALARY WILL BE SAME IN INCOME TAX

Treating Stipend at Par with salary will it araise a problem while assesessment of TDS? as there is no such case laws in its defence.

Dear

In the  Sudhir Kumar Sharma v. ITO (1983) 17 TTJ (Jp) 226 : (1983) 14 TLR 826 (Jp). Gist : ------ Stipend received by the assessee, an articled clerk, from a concern of chartered accountants, cannot be treated as a payment for services rendered by him to chartered accountants. The assessee, an articled clerk, being a newly recruited graduate, cannot assist the chartered accountants in their work and he joined them with a view to learning and receiving training. The stipend paid to the assessee was only to enable him to meet out the cost of books, examination fee, etc., which he had to pay during the course of training. The same could not, therefore, be treated as assessee"s income and therefore, was exempt u/s 10(16).

hence it will not attract tds

Yes this type of stipend is exempt as they are trainees under professionals but what abount trainees in business ie Service Sector, Manufacturing, etc.? Is there any case laws in support of that?

Thanks..

Well it is taxable like salary only.. there is no difference between salary and stipend.... or else evey employee will receive stipend if it was exempt.....

Also in the employement contract you can mention whatever you wish.. but for Income tax purpose it is salary only....

Yes, I accept it... Thank you very much for contributing...