Is stipend taxable???

Dear All,

Stipend is taxable under "Income From Other Sources".

Stipend not comes under the defination of section 10(16).

But don't worry basic exemption limit is Rs. 1,60,000/-. no one pays this much of same.

kya stipend accrual basis pe taxable to nhi hoti h, bcoz meri stipnd accrue hui h recev to hui nhi

In my point of view stipend is not taxable as the same is given for the purpose of support or help in education purpose. the above explanation give by the mR thakker and a student namely is very clear and supportive in the favorable side

As far as the question is concern that whether a ca student get the stipend to cross the basic exemption limit............In this matter i would like to inform my all friends that now a days a lots of mutiple concern or industries are present which gives a standard stipend for the industrial training in the final year of training hence the total sum of such stipend may be cross the basic exemption limit

regds

Stipend is not taxable and one may refer case laws cited above

First read the case law carefully and then reply here. The case law is now not applicable in the present scenario.

In the case law there is mention that the same is applicable before introduction of rule 32B prescribing the minimum stipend rules was prescribed by the Institute which do not follow the follow the practice of paying a meager amount to meet the cost of books, fees, etc and hence cannot be termed as receipt for the purpose of meeting the cost of education to be exempt u/s 10(16).

Dear All,

Stipend to a CA artical is taxable under INCOME FROM OTHER SOURCES if it cross the basic exemption. It is not treated as like Scholership.

This is a very good Question .

Thank You for asking.

I think - it is taxable under the head - " Income from Salaries"

THERE is  "EMPLOYER - EMPLOYEE relation" . An Articles is to sign Forn no 102, 103 to get started  with the Articleship Training. This is a documentary evidence which proves that there subsits the relationship.

Any body , who have differ in opinion can contact me with valuable comments along with evidence. Any interested person can contact me in - akash.taxation @ gmail.com.

All the Best .

A K BANIK , Kolkata.

Then CA Aditya Maheshwari,

As said by you the case law cited above is before the introduction of Rule 32B prescribing the minimum stipend. Then a Article receiving amount of stipend can also claim a deduction of minimum amount given under Rule 32B

Please don't take it as for yourself as there may be people who earn otherwise than by way of stipend or may have stipend more than the amount exempt , so the query asked is relevant and it has been held by Madras and Karnatka high court that the scholarship should be construed in the liberal sense, the stipend recieved is exempt.

hi all, i have gone through most of the replys and every one is talking about stipend got by CA students only, but there are more stream in which students are getting big stipend which fall under tax slabs.
one of my freinds is studing oncology and he is geting Rs. 34000 p.m. as stipend now please tell me that if he falls undre tax liability and just so you know his institute is not applying any TDS provisions on his stipend. and he also told me that the stipend being paid to them is taxfree. and i was confused coz i thought the same thing that the stipend may fall under tax act but we r not getting enough to stand there.
please do cleare my confusion.

thanks

krupa trivedi

It is no doubt that stipend is received by various students under different courses and the same exceeds the basic exemption limit. Even the research students receives stipend which may exceeed the basic exemptiom limit under the income tax act.

It is not the quantum that has to be seen to make stipend taxable it is important to understand the nature of reward bieng paid to the student/individual. If the reward/remuneration could qualify as scholarship under 10(16) of the income tax act the same shall remain tax free and out of the charge from taxability.

In this respect, I would like to mention a judgementhas been attached where it is specifically mentioned that the amount received as stipend cannot be taxable even if total income of the person exceeds maximum amount not subject to tax under the income tax act.

If a person is getting stipend from a company for persuing M.Tech, being a graduate, so would it be taxable or exempt.?
The amount of Stipend is Rs.15000/month.