Stipend is Exempted??

Page no : 2

Ankit Madhogarhia (Pursuing Final) (531 Points)
Replied 21 June 2011

Hi,

Whether the artcile cant claim conveyance or not with his /her principal, i a askinh this question because when i asked my employer for the conveyance saying that why we are giving you stiphend ,conveyance is also a part of it,Is it true ?

Regards,

Ankit Kumar

Nabeel (CA) (3288 Points)
Replied 22 June 2011

It is taxable under the head IOS.......

Mayank Saraogi (Learner) (170 Points)
Replied 22 June 2011

@ akash kangsa banik wot if an articled clerk is having other income more thn the basic exemption limit....think....

@ Ankit MAdhogarhia its not true as per my knowledge...get it confirmed from here and thn ask ur principal to give this in writing and send it to the ICAI....and u can claim transfer for tht reason as well(if u want)....CAs like this sometimes make me feel ashamed....huhhh

srinivass (CA Final) (2466 Points)
Replied 22 June 2011

yes it is not exempted , i m agree with roopale kadam

CA. Roopali Kadam (Jobs on assignment basis.) (1453 Points)
Replied 22 June 2011

Originally posted by : Nitin Wadhwani
	Stipend is taxable under "Income from Salaries" as Sec. 17(1) point no .1 is Wages. Wages means wages as per Factory Act 1948 which includes payment to apprentices. Regards, Nitin Wadhwani

though salary includes above wages isn't employer -employee relation needed in income tax. We are having Principal-Student relationship?? Let me know

CA. Roopali Kadam (Jobs on assignment basis.) (1453 Points)
Replied 22 June 2011

Sec10(16) scholarships granted to meet the cost of education

though there is a case law,

But can we say , that i am getting a monthly scholarship of rs 2000 which can be reduced considering our attendence, leaves.

therefore i was of the opinion it should be charged under other sources

santosh kumar (Trainee) (57 Points)
Replied 22 June 2011

APPRENTICE FEE IS NOT CHARGABLE TO TAX BECAUSE ITS NOT COVERED UNDR SALARY HEAD, APPRENTICE FEE IS JUST LIKE A REIMBURSMENT OF TRAINEE'S EXPENSES.

Abhijeet Deshpande (Co-Founder & Manager @ Tax-Yantra) (1171 Points)
Replied 22 June 2011

@ vivek thanx for the info

CA. Roopali Kadam (Jobs on assignment basis.) (1453 Points)
Replied 22 June 2011

ref: /forum/details.asp?mod_id=5461&offset=2

CA Nitin Wadhwani (Chartered Accountant) (4469 Points)
Replied 24 June 2011

For the purpose of payment of stipend, it is an employer-employee relationship.

Aparna Raja K.C (Student) (520 Points)
Replied 25 June 2011

:P... it will be chargable under Salaries .. but kindly let me knw in which firm you work, and uder which CA who is paying you such a high stipend :P

1 Like

A.K.Banik (Tax Consultant) (1596 Points)
Replied 30 June 2011

Originally posted by : Mayank Saraogi
	@ akash kangsa banik wot if an articled clerk is having other income more thn the basic exemption limit....think....

He can have the following incomes :

1. Income from Tution of Students of class 11/12 , B Com , CA Ipcc , etc.

2. Income from Personal Business - Like preparation of IT Return for own clients , Accounts Preparation work for small traders , E filling of Returns of Relatives .

3. Interest on Deposits.

4. Income from Share trading Business .

All these are Relevant work for an Article .

What do you think ?