Pls answer this

Is Stipend earned during articleship taxable under the head "SALARY" ??????????

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OF COURSE STIPEND IS TAXABLE

 

BUT NOT UNDER HEAD "SALARY"

 

UNDER HEAD "INCOME FROM OTHER SOURCES" U/S 56 ...

 

THANX

 

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For attracting taxability , there require the relationship of employer and employee . There is no relationship between principal chartered accountant and atricled clerck as employer and employee or master or servant.

Hence , the stipend earned cannot be  charged to tax under the head salary..

I'm doing CA Final. i would like to go 4 Industrial Trainning from sept 2010.

But My Principal Never Allow Seems. what willi i do? pls advise me

no it is income under the head other sources with 100%  CORRECT ANSWER

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