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Is article stipend taxable under income tax??

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Niraj jain

24 Points Posted on 04 January 2021

While filing the return of article assistant , we should include stipend income as taxable income ??

if it is taxable under which head should classify
1.salary
2. other sources

if it is exempt ???
then under which section where should we claim in itr

Replies (9)

Quick Summary

This discussion explores whether stipends received by CA article assistants are taxable under UK income tax. While some initially suggested it's taxable under 'salary' or 'other sources', the consensus leans towards it being a scholarship exempt from tax under Section 10(16) of the IT Act. However, a dissenting view argues it's fully taxable under 'Income from Other Sources' and not a scholarship.

CMA Harnam Singh

Senior Finance Manager

22 Points Posted on 04 January 2021

It is taxable under head salary.

ayusmita

Tax consultant

3466 Points Posted on 04 January 2021

I don't think CA's giving form 16 to articles assistant but if they giving then in the head salary
if no form 16 then it's comes under income from other sources
if it is exempted then in EI session of itr

Tanvi Sharda

42 Points Posted on 04 January 2021

Any student who is pursuing the course of CA and doing articleship, receives a stipend from his principal. This stipend amount is governed by an act and it is provided to CA students to meet the expenses of material and exam fees. Thus it falls under the category of a scholarship and is exempt from tax.

Exempt u/s 10(16) of IT act.