IS Stipend under Salary

Others 7916 views 24 replies

Stipend is taxable and its taxable under the head salary not IOS. its because employee employer relationship is existing because we sign contract with our CA an fill form for that.

(Dr. Girish Ahuja).

Stipen is taxable and it is taxable under the head Income from other source....

stipend is exempt from tax u/s10(16)

Stipend is taxable as the case law mentioned is not relevant anymore. So please reply taking into account the facts of the old case which are distinguishable currently.

So please quote something in support and do not vaguely post something like sitpend is exempt.

I agree with the statement that "The stipend will be taxable u/h Income from Other Source

If Stipend is taxable, is it covered by TDS Provisions? If yes under which section?

The big - 4 audit firms and other large audit firms who pay stipend which exceeds the basic exemption limit deducts TDS u/s 192 like TDS on salary.

So is stipend taxable under salary then? But is Principal- Article relationship same as Employer - Emplyee?

Funny that even CAs find it hard to reach a conclusion. Wonder what a non-CA like me will do with his tax issues.:/

 

Can someone please tell me whether I need to pay any tax or not if my salary plus short term capital gains through stock markets for the year 2009-2010 is less than Rs.1,60,000.

I am not a CA or a tax expert.....within my boundaries, I will share information here in this regard...i am saying things only based on what i know for sure

I was pursuing PG in MadhyaPradesh and there was this court case going on whether stipend is taxable or not in the high court....the judgement has come saying we need not pay taxes and IT was asked to pay back whatever collected from us....The main issues involved were

IT rules do not explicitly say whether stipend is to be taxed or not...it does say, scholarship to pursue education was not taxable......

It was argued that stipend is a sort of scholarship based on dictionary meanings and certain other past cases(obviously no direct references to this term was found).....but the court felt that, what we argued was correct

So no matter what u thimk the rule book says....this is as of now the courts view point...and unless some other court rule from a bigger court comes, stipend is not taxable......without an upper limit!!!!


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