Taxability of Stipend

It is exempted u/s 10(16)

Agreed

Its Taxable..........

Exemption U/s 10(16) is Withdrawn in Financial Year Amended.....Yr(Not Sure)

No CA firm pays 13000+ p.a stipend p.m.

dont worry abt taxability

@ Alex..........Please Clarify UR Self

is stipend  scholarship ?

because as per section 10 (16) scholar ship  granted to meet the cost of education is exempt ..

kindly clarify it 

but can the stipend be considered as scholarship ???

To quote from Allahbad High Court which gave favourable decision to assessee in a combined order in cases of

1. Commissioner of Income-tax v. B.L. Garg [2007] 289 ITR 218 (All)
2. Commissioner of Income-tax v. Y.K. Seth [2007] 289 ITR 218 (All)

The meaning of the word Scholarship as per Webster’s Third New International Dictionary, 1966 Edition is as follows :

“Scholarship: A sum of money or its equivalent offered (as by an educational institution, a public agency or a private organization or foundation) to enable a student to pursue his studies at a school, college or university.”

Funk & Wagnalls Standard Dictionary, International Edition, which is reproduced as under :

 

“Scholarship Maintenance or a stipend for a student awarded by an educational institution.”

 

The Encarta World English Dictionary gives the following meaning to the word scholarship :

“Scholarship—Financial help for a student,

1. a sum of money awarded to a student on the basis of academic merit, to help with living expenses, study or travel,

2. formal study, academic learning or achievement,

3. academic works, a body of learning or an academic subject.”

I came to know that there is a caselaw :Sudhir Kr Vs ITO that upheld the nontaxability of stipend. ...but in no case I find that the stipend specially that which is received by CA student are in nature of scholarship.

So, 10(16) will not be applicable for the case as per my view...but I have not gone through case laws reffered by shweta.

Shhweta can u please mail me the text of the caselaw, if it  is possible.

riteshsethi1 @ gmail.com

thanx

Where is the word stipend written in the judgement? And also from all the definations given above for scholarship no defination fits for Stipend i. e. in no defination stipend can be considered as Scholarship received to be exempt u/s 10(16). Also Scholarship Maintenance or a stipend for a student awarded by an educational institution. Also CA firms are not running educational institutions.

Yea if  possible please post the entire Judgement  ...because 10(16) cannot be applied...

exempted u/s 10(16)

not taxable

Dear members,

All those who have a view that it will not be taxable or some who are referring 10(16) as exemption mode......can please provide a back up or some legal text............i and my friends who were in big  firms used to show it as a taxable income in our ITRs, though it was below basic limit thus were not taxed.

thanx