Taxability of Stipend

If its paid for eductional support, its exempt u/s. 10(16) of IT act, whatever be the amount.

Purpose is important, not the quantom. Eg. Post graduate students of medical field getting stipend of 5 to 6 lakhs PA, while hardly spend that much. In other words, it is the incentive for (higher) education, so that students may get attracted to it.

stipends-are-tax-exempt

Stipend: a case of a capital receipt besides being exempt u/s. 10(16)