Re : Stipend taxable or exempt

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Is stipend which is given to an article assistant under CA course during  articleship period, is taxable or exempt under Income Tax Act, 1961 ?

Please do specify the Case decided, if any based on which u give ur answer....

Replies (63)

Case i don't know. But it is taxable if it crosses the basic exemption limit. There exists employer - employee relationship.

ya!! it is taxable if it cross the minimum exemption limit under the head Salary

Yes.

Yes, its taxable,  subject to total income being more than minimum exemption limit which is Rs 160000/- for the current FY.

So you guys are saying that while computing gross total income we will take total stipend receive by the assessee during the previous year under the head salary.

Stipend is not taxable. Read the attached case law

Income Tax Act is governed by the decision held in High court & Supreme court and not by the decisions held in Income Tax Appeallate Tribunal, so Akash deep the case suggested by you doesn't prove that stipend will not be taxable. 

stipend is not taxable under income tax act

Mr. Vinay, plz provide the details where it is written that stipend is not taxable.........in the Income Tax Act, 1961 or any case held except that is given by akashdeep.

It is exempt U/s 10(16) of IT Act, 1961

It is exempt U/s 10(16) of IT Act, 1961

Good question....it's taxable....

Sec 10(16) of IT Act, 1961 says, "Any scholarship granted to meet the cost of education.Section 10(16)"

 

  • When a person gets scholarship there is no relationship of employer - employee like ICAI gives scholarship to rankholders of PCC, Backward class student on fulfillment of given criteria.
  • Literal interpretaion says that Stipend is not a scholarship and when a person gets stipend there exists employer - employee relationship...if it exceeds minimum exemption limit then its Taxable under the head Salary.

it is not taxable

the above case law provided by Akashdeep holds good because untill and unless a further appeal is filed the decision of the tribunal is final.

moreover there exists no relationship of employee and employer between articled assistant and his principal

 

 

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