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Treatment of Stipend as per Income Tax Act.

8924 views 10 replies

Shefali Bajpai

Article Assitant & CA Final Student

1148 Points Joined March 2007

Hello Friends,

I would like to know whether the Stipend received from the Principal would be shown as the Salary Income or Income from Other source???

Regards,

Shefali

Replies (10)

HI Shefali Stipend received is treated as salary inome because there is a clear relationship of employer and employee. When an employee receives stipend, still it works under direction of employer. Pls let me know if require more informations Regards Vijay

Guest

yes, stipend is treated as salary and it should be shown under income from salary

SONUJRT

CA FINAL STUDENT

337 Points Joined August 2007

YA, IT SHOULD NE SHOWN UNDER THE HEAD SALARY

pooja

Chartered Accountant

68 Points Joined January 2008

ya... it is salary income & the same is exempted under section 10(16) of Income Tax Act.

Shefali Bajpai

Article Assitant & CA Final Student

1148 Points Joined March 2007

Thanks a lot for the replies.

Regards.

Guest

425530 Points Joined August 2012

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

Guest

425530 Points Joined August 2012

Hi,

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

Vignesh

B.Com CA FINAL & CMA FINAL

193 Points Joined May 2008

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

GAURAV BEHL

CA-FINAL

228 Points Joined August 2009

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

shyambali yadav

chartered Accountancy final

48 Points Joined December 2008

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