Stipend is Exempted??

Articleship 2432 views 27 replies

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

Replies (27)

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

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

@ 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

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

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

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

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.

@ vivek thanx for the info

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

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

: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

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 ?

Well the stipend we receive isnt large enough to be taxable anyways


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