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Is stipend income taxable?

priyanka (ca) (43 Points)

09 March 2015

had a query with regards to taxablity of stiphend income. The assessee is pursuing Phd. & is in receipt of stiphend income from the govt. Will it be taxable???

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6 Replies

CA Shree Jain (Chartered Accountant) (1572 Points)
Replied 09 March 2015

Yes. Its a Taxable.

CA Srikanth Yadav (Chartered Accountant) (3162 Points)
Replied 09 March 2015

If the stipend is paid for meeting the cost of books, coaching fees, examination fees, etc, than it will be exempted u/s 10(16).

MAHESH (Tax Consultant) (114 Points)
Replied 11 March 2015

Dear Priyanka,

stipend is not taxable and follow the link to will get the required.

/forum/is-stipend-under-salary-90486.asp

MAHESH (Tax Consultant) (114 Points)
Replied 11 March 2015

Vishal Goel (Chartered Accountant) (1688 Points)
Replied 16 March 2015

In Sudhir Kumar Sharma vs ITO (1983 15 Taxman 100 Jaipur Mag) has held that the stipend received by an articled clerk from a chartered accountant is exempt under Section 10(16).

The reason given by the Bench was that the stipend was paid to meet the cost of books, coaching fees, examination fees, and so on.

Reference may also be made to the ITAT decision in ITO vs Dr. G. N. Ramachandran (1 ITD 902 Bangalore) where it held that stipend received to meet the cost of education would be exempt under Section 10(16).