stipend received by audit assistant

yes it's taxable in the hands of the rcpnt and will be taxable under the head salary, but if it increases Rs.1,10,000.as u know. hv a nice day

But i don't agree... For any income to fall under the head salary, the condition is to have an employer-employee relationship. but an article is not an employee. so the income will not be charged under salary. But i guess it should be 'income from other sources'.

income from other source

Income from other sources.

It is exempt U/s 10(16). Case Law : Sudhir Kumar Sharma v/s ITO (1983)(Jaipur-Tb).

Hey Pat, pls could u provide me with the citation no., of that case law. i made an effort but couldn't find that case law.

Stipend will not be considered as income because any amount paid for meeting cost of education is exempt u\s 10(16) for better understanding refer the section and case laws from Incometaxindia.gov

@ Renu Hi, Send me your id. I'll send you the case itself.

up to limits fixed by institute is exempt as an exp for education . above is taxable under other heads

Scetion 10(16) states Scholarship and not stipend. Minimum stipend paid by the CA Firm is fixed by the Institute of Chartered Accountant and does not mean that it is towards meeting cost of education. Stipend is paid regardless of ability, income structure or any other criteria. Whereas Scholar ship is usually give to a person based on performance, income grade or other criteria and all students will not be eligible for the scholarship in that route. Hence, it would be incorrect to claim that stipend will be exempt

Hi Pat.... Please send me the case of Sudhir Kumar.... If possible send me the ITR No. or any other link

Stipend received by an articled clerk is EXEMPT EXEMPT EXEMPT. As per the view of ITAT Jaipur Bench "A graduate who has joined as an audit clerk doesnot have knowledge to do works of a Chartered Accountant and so it cannot be said that the stipend was paid for the services rendered by him. Stipend is paid to meet; (a) Cost of education (b) Cost of books (c) Examination fees etc. of the articled clerk.