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Stiphend Received during Articleship period is taxable or not ?

Sagar padhi (Articled Assistant) (69 Points)

26 March 2018

Stiphend received from Principal during 3 year articleship under chartered accountant is taxable or not?

If it is not taxable and exempt then under which section it is exempt ?

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4 Replies

HIMANSHU GARG (138 Points)
Replied 26 March 2018

not exempt but tax limit is 250000

Deepika Yadav (561 Points)
Replied 27 March 2018

Stipend received during articleship period is exempt income u/s 10(16) of the act

Reference may also be made to the itat decision in ITO vs. Dr. G. N. Ramachandran (itd 902 bangalore) where it held that stipend received to meet the cost of education would be exempt under section 10(16)

Sagar padhi (Articled Assistant) (69 Points)
Replied 27 March 2018

Thanks Mam Deepika Yadav

sir Himanshu Garg i agree but if it is not exempt ...tgen it cant be also treated as Income from salary.?

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Gaurav Bansal (Student) (32 Points)
Replied 27 March 2018

The stipend received shall be taxable since the amount so received (particularly in case of CA Articles) is not for meeting any research or book cost. Moreover it shall be taxed under IFOS since there is no employer employee relationship, so can't be taxed under Salary head.