As per section 10(16), scholarship received to meet the cost of education is exempted... I think stipend won't come under the definition of scholarships...
It's tax free... because stiphend is not at all included in the definition of "Income"... it's just the consideration received for meeting our expenses... So, total Stiphend Income is exempt under IT Act,1961!
Salary is paid to an employee who is on the payrolls of a company. It is usually a compensation associated in exchange for the services of the employee. Stipend on the other hand is a form of salary , such as for an internship/training. It is usually paid as an enablement for someone to work who is usually unpaid.
Stipend is also a form of salary only
In case of a medical practitioner or an undergraduate who is working just like any other doctor or employee respectively, stipend paid will be taxable as income from other sources if Form 16 is not given for the same. If Form 16 is given, it is taxable as salaries.
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