Dr
216 Points
Joined July 2010
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!!!!