stipend

hey pls clarify it....coz accrdng to me if basic exemption limit is crossed...it is taxable????

Originally posted by : Rohit Kapoor
	it is exempt under sec. 10{16}...as decided in case of mukesh kumar vs ITO

I agree. It is exempted.

can u give more details abt the case

chk out this decision..

Thanx Kushal.......

The above judgement got overruled later... ritenw stipend is very much taxable and am paying it..

Hi Kranthi,

can you pls provide any notification in this regard ?

though i am also in your favour as far as i heard about taxability of stipend....

A long drawn battle and has also been discussed in length here

/forum/re-stipend-taxable-or-exempt-58391.asp

yes it is treated as income and now its taxable... But for CA stipend there is exemption still. SOme show it in ITR and some dont.....

mostly the articles from BIG4 are paying tax also as their stipend is higher and crosses exemption limit.It is treated as deemed salary.

For ca articles it is referred IN section 10(16), wherein scholarship for meeting cost of education is excludible from taxable income.

What exemption is there for CA Students?

Stipend does not mean scholarship for meeting cost of education to be excludible from taxable income.

It is taxable. If it was not then why the big 4's are deducting TDS on the same as per section 192.

I agree aditya... But its still a big question and no answer as of now... there is nothing in Act for it....

But for CA there was a case laws much time back and many tax exmeption on basis of that. BIG4 are deduction TDS to be on safer side....

As of now no perfect provision in IT act.....

The case law is of Sudhir Kumar Sharma (1983) 15 Taxmann 100 of ITAT Jaipur Bench.

Orders of the ITAT have no validity in the income tax laws and on the deaprtment. Further in the same case law there is mention that the same is applicable before introduction of rule 32B prescribing the minimum stipend rules was prescribed by the Institute which do not follow the follow the practice of paying a meager amount to meet the cost of books, fees, etc and hance cannot be termed as receipt for the purpose of meeting the cost of education to be exempt u/s 10(16).