Treatment of Stipend as per Income Tax Act.

For all you ppl, stipend is not at all taxable under income tax act.. and remember one thing first, when u receive stipend it clearly means your not an employee of the principal.. hence the question of employer employee doesnt arise.. It SURELY CAN NOT BE regarded as Salary... It is completely exempt under IT Act u/s 16... if reqd refer case law  Ratnakar Rao (A) Vs. Additional Commissioner of Income-tax (1981) 128 ITR 0527.  And ppl please read income tax properly...

Regards

Guhan V

Hi,

Just tell me whether ESIC and PF is applicable on stipend if company is registered under companies Act 1956 and shop establishment Act 

no there is no relation ship of employer and employee between the Principal and the article assistant. so it is not treated as salary income and it is not taxable

no as per the definition of employee in epf act,, it does not include apprentice/article assistant.

as per provident fund act an apprentice or article assitant shall not be treated as employee of the oraganisation, hense no PF is applicable on stiphened paid to article assitant