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Taxability of Stipend
is stipend taxable? because my stipend is higher than the basic exemption limit
Replies (6)
If its paid for eductional support, its exempt u/s. 10(16) of IT act, whatever be the amount.
but how do we define educational support? because the purpose would be educational support but my fees and all the cost of education is not that high
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.
in my opinion only scholarships received to meet the cost of education is exempted under 10(16). stipends are generally paid to interns and apprentices for the service or work done by them and it will be taxable
stipends-are-tax-exempt
Stipend: a case of a capital receipt besides being exempt u/s. 10(16)
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