Tax on Stipend (CA articleship)

hi

the stipend paid to a CA article trainee is fully exempt from income tax.

Please see attached file

there does not arise any taxability on stipend received while in articleship training. as the name it self suggest that the stipend is not a salary. stipend is just a part of reimbursement from the principal to his assistant all the personal expenses incured by the assistant on himself. hence there is no part of earning which can be considered as an income. hence stipend is totally exepmt from the purview of income tax.

The case law is of Sudhir Kumar Sharma (1983) 15 Taxmann 100 of ITAT Jaipur Bench.

Orders of the ITAT have no validity in the income tax laws and on the deaprtment. Further in the same case law there is mention that the same is applicable before introduction of rule 32B prescribing the minimum stipend rules was prescribed by the Institute which do not follow the follow the practice of paying a meager amount to meet the cost of books, fees, etc and hance cannot be termed as receipt for the purpose of meeting the cost of education to be exempt u/s 10(16).

https://www.taxguru.in/income-tax/taxability-of-stipend-received-by-indian-resident-students-out-of-india.html

Here is an article of Tax Guru. As per this article stipend is taxable.

Can someone please tell me about similar sitiuation with CS students. The company is deduction Professional Tax from the salary at the Rate of Rs. 150 per month ( 9,999 to 12000 Bracket).

However, the PT ACT remains silent on this.

If it is taxable than please tell me the provision under which it can be taxed. The PT act of Gujarat clearly states that PT should be deducted from the salaries of professionals/ employees.

There is no employee-employer relationship between the 2 parties.

Please mail me the case law...

Eagerly waiting for it...

Please disturb me @ karan.mehta17 @ gmail.com

Thank You!!!!

Regards...

sir i have to know for abt the case law ,,regaring the same  situyation i too facing...my email: msurajpuri @ gmail.com 

please forward the details of case law abt Professsional Tax on Stipend.