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Stipened is taxable under which head

(Guest)

if a person doing his articleship earning 8000 pm and income from other sources 300000. his yearly income exceeding the min limit .......so under what head stipened will be taxable income from other source or salary?

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3 Replies

vipul (student) (26 Points)
Replied 04 June 2014

stipend received during CA-articleship is exempted from tax

CA Raj Doshi (Practising CA) (8790 Points)
Replied 04 June 2014

Stipend fully taxable under the head salaries as there is an employer employee relationship. Stipend does not adhere to the conditions to sec 10(16) hence not exempt.

vipul (student) (26 Points)
Replied 05 June 2014

The proper view to take on section 10(16) of the Act would be that scholarship, even though income in the hands of the scholar-recipient, would not be ncluded in the taxable total income, if it was a scholarship granted to meet the cost of education - Dr. V. Mahadev v. CIT [1990] 51 Taxman 411/184 ITR 533 (Madras)....since stipend is received in course of learning..it is fully exempted