Tds

CASE LAW DETAILS Decided by: ITAT, CHANDIGARH BENCH `SME-B’, In The case of: Dr. Rahul Tugnait v.ITO, appeal No. :ITA NO. 197/CHD/2008, Decided on: JUNE 30, 2008 

"By scholarship as ordinarily understood, we mean anything which makes education free of charge, or at a confessional rate of fees. In section 10(16) however, scholarship is not used in that sense of something in educational opportunity which is given free. The basic postulate of a scholarship in cIause (1.6) is that it is an income receipt. Nevertheless, it is excluded from the total income by being brought under section 10....However, an amount paid to the assessee in the for services as an intern in a medical hospital, where service as an intern is necessary for a person who joins a medical school, cannot be regarded as a scholarship so as to qualify for exemption under this clause”.

So, in my view the stipend mentioned by you is taxable.

Yes, Ms Madhavi is absolutely right. If objective of earning stipend is to meet out the expenses of full time education, stipend will not be treated as taxable income but it will be taxable if its primary objective is not to meet out education expenses.

Yes, Ms Madhavi is absolutely right. If objective of earning stipend is to meet out the expenses of full time education, stipend will not be treated as taxable income but it will be taxable if its primary objective is not to meet out education expenses.