Re : Stipend taxable or exempt

Dear all stipend is not taxable. It is exempt u/s 10 (16). It is definitely schlorship. One cannot say that there is employer-employee relationship. Rather it can be said that there is mentor (trainor) -trainee relationship. The return that we get isnt salary rather it can be said apprentice. I think this explanations are clear enoiugh to conclude that stipend is exempt.

i hv seen that tds is deducted from stipend given to articles of big4's... where my fnds were also working.... so can u plz justify....

Dear all, i asked this question from Dr. Girish Ahuja and he answered that it is taxable because employer-emplyee relationship exists..

 Its definetely taxable. ITAT ruling is not a law & contrary stand can always be taken.

I also appreciate Sunali's observations

ya its taxable yaar as a salary income

it is taxable.

hie al.....stipend is nt taxable..........

n @ sumit singhal.........fr ur information it is nt creatin an eployer employee relationship it creats a studebt principal relationship........v r workin as apprentice.......

so obviously its nt taxable

Thanks everyone for sharing the views here about whether stipend received by an article assistant from his/her principal will form part of Gross Total Income under the head salary or not ?

And the views received here shows that we (who are doing CA or has became CA) are not clear that the stipend received by an article will be forming part of Gross Total Income or not.

SO still the discussion remains the same "Is Stipend received will form part of Gross Total Income under Income Tax Act, 1961" ?

Anyone having any views can post it here about the above discussion. Please do specify reason for your views.

It's taxable as there exist employer - employee relationship & even professional tax & TDS is also deducted from the Gross Stipend.

Earlier it was quite Debatable issue & there are also judgements regarding it's non taxability .

But Now the Instituti ( ICAI ) had issued some circullar . in which it's clearly mention that                " Stipend is taxable if it's exceeds the tax slab "

Friend

Stipend is counted as "Income from Other Sources" and is not exempted under any Section of the Income Tax Act.

Hence is Taxable

You can't count it as a salary as there exists Trainer - trainee relationship.

is this a stipend taxable

yes its taxable if it is cross the basic exemption limit.