STIPEND

Stipend recieved is exempt under SEc. 10(16) of the income tax act........

"Sec.10(16) Scholarships granted to meet the costs of education."

yeah amount received as stipend are not included in the income

stipend is exempted from tax

Stipend is not expressly exmept under the Act. Thus Stipend is certainly taxable income if it is purely being given in form of cost of living or as wages or salary or for any purpose but studies . However, if the Stipend granted is for furthering education or gaining knowledge , same can be claimed exempt u/s 10[16] of the I T act . In this regard the decision of the Karnataka High Court in A. Ratnakar v. Addl. CIT [1981] 128 ITR 527 can be applied.This was also followed by Tribunal in case of Income-tax Officer v. Dr. G.N. Ramachandran [1 ITD 902]