Is STIPEND taxable ???????

no stipend is not taxable.stipend is too less  hence not lies under tax slab thats why.

There is no chance of Tax on Stipend. As Above Person Said There is no slab for Stipend in I-T.

This is actually a very good question raised in CAClubindia. I actually dont believe it is not taxable because it is too less...... What if, an article who is working in any of the BIG 4 Accounting firm earning more the non taxable slab....... Hmm Tell me....

I feel stipend is not taxable as it cannot be charged to tax anywhere under the Income Tax Act. Because, there is no employer-employee relationship in place... It is more of a teacher-student relationship. Stipend is paid to cover the cost incurred getting yourself trained. Not to make profits in lieu of it. Of course, BIG 4s do pay huge stipend. But still you cant ignore the fact of absence of employer-employee relationship.

Apart from that, according to what I have remembered(Tch, tch... My memory is too weak, so better corroborate this point with someone) there is a case law, a judgement given by some high court saying that stipend should not be taxed. I cant confirm on this. So better take some homework and the get the citation and post it here......

STIPEND IS NOT TAXABLE

PLEASE REFER FOLLOWING UPLOADED CASE LAW

: TO VISIT MY PROFILE

CLICK  HERE 

it is an exempted income u/s "10(16) scholarships granted to meet the cost of education"

hey dat was an incredibly good question and has been equally well answered by bvm jaipur. that article was really a masterpiece

^ are you being sarcastic?

My Dear Fellow Aspiring CharteredAccountants,

First of all a very Happy Diwali To all of You.

Stipend earned by the Articled Assistant is Taxable in his hands.

While Computing the Gross Taxable Income the income earned by way of stipend is included under the head " Income from Salaries".This is because the relationship between the Principal and the Articled Assistant  is that of an employer-employee. ( The article being a contractual employee). If the article alongwith his stipend income  also earns income from some other sources his gross income will be computed taking into consideration his stipend as well that other income.

The stipend earned was once exempt under section 10(16) of the Act.However the same was subsequently scrapped.Even though other scholarships earned continues to be exempted u/s 10(16) income by way of stipend is taxable.

There is no written record available therefor. I had the same query when i Joined my articleship and got it resolved from various relaible sources. Besides, being in a big 4 firm i could tell the same from the experience of my colleagues.

I hope this solves your query.

in case you need any clarification do lemme know.

Regards......

There is no written record available therefor. I had the same query when i Joined my articleship and got it resolved from various relaible sources. Besides, being in a big 4 firm i could tell the same from the experience of my colleagues.

I hope this solves your query.

in case you need any clarification do lemme know.

Regards......

hey guys..........

vignesh is telling it is taxable .........

while others are telling it is exempted......

who is right ?????????

 ???????????????

hi i agree with the view of vignesh s. stipen is taxable in the hand of student.

i think,  relationship of article trainee and C A member is not " employer ,employee " . its" trainee & principal" relationship... if you have any notification saying its  " employer ,employee " relation , then please share the same.

i think its "trainee & principal" relation because in P F act , bonus act , article trainee's are excluded from calculation of employees...