Taxability of Stipend of Articles

Page no : 2

Anil Mehta (Joint President) (25 Points)
Replied 09 July 2009

Originally posted by :Vinay Ramachandran
"	Can you email me the relevant case law to my email anilmehta123 @ hotmail.com	"

Niyati (Article) (99 Points)
Replied 06 July 2010

hey..plz sent me details of case study which u r talking abt...my email id is niyatiloladiya @ yahoo.com

its urgent...do helpfull...

Aditya Maheshwari (CA in Practice) (35867 Points)
Replied 06 July 2010

It is not exempt. The case law being discussed is not relevant in current time.

Visit this link /forum/is-stipend-under-salary-90486.asp

Aditya Maheshwari (CA in Practice) (35867 Points)
Replied 06 July 2010

The case law is of Sudhir Kumar Sharma (1983) 15 Taxmann 100 of ITAT Jaipur Bench which states that stipend received by CA student is exempt.

In the 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 hence cannot be termed as receipt for the purpose of meeting the cost of education to be exempt u/s 10(16).