17 February 2009
It is taxable under the head "Salaries". As per the definition of salary, it includes 1.Wages Wages are wages as defined in factory wages act, 1948 which includes amount received by an apprentice.
19 February 2009
For your doubt clarification, I am quoting the views of an expert 'Miss Komal Mantri' who had given a very good reply of the similer question a few days back
"The view that stipend is not taxable is taken in the light of Section 10(16), under which, scholarships granted to meet the cost of education is exempt. In this connection it may be noted that the Income Tax Appellate Tribunal, in Sudhir Kumar Sharma vs ITO (1983 15 Taxman 100 Jaipur Mag) has held that the stipend received by an articled clerk from a chartered accountant is exempt under Section 10(16).
The reason given by the Bench was that the stipend was paid to meet the cost of books, coaching fees, examination fees, and so on.
Reference may also be made to the ITAT decision in ITO vs Dr. G. N. Ramachandran (1 ITD 902 Bangalore) where it held that stipend received to meet the cost of education would be exempt under Section 10(16).
It is felt that the ratio of these decisions will apply to the stipend received by you for pursuing a super-speciality course in urology."
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