STIPEND OF ARTICLE IS IT TAXABLE
This query is : Resolved
01 August 2009
SIR
ONE OF THE ARTICLE GETS STIPEND SAY RS.15000 PER MONTH FOR HIS EXEMPLARY SERVICES,MY QWERY IS " IS IT TAXABLE?"
AND UNDER WHICH HEAD OF INCOME?
BECAUSE I DONT THINK IT IS TAXABLE UNDER THE HEAD OF SALARY AS THERE IS NO EMPLYER EMPLOYEE RELATION SHIP.
IS THERE ANY CASE LAW TO SUPPORT YOUR ANSWER OR SOME STATUTE WORDED
PLEASE ADVICE
ONE OF THE ARTICLE GETS STIPEND SAY RS.15000 PER MONTH FOR HIS EXEMPLARY SERVICES,MY QWERY IS " IS IT TAXABLE?"
AND UNDER WHICH HEAD OF INCOME?
BECAUSE I DONT THINK IT IS TAXABLE UNDER THE HEAD OF SALARY AS THERE IS NO EMPLYER EMPLOYEE RELATION SHIP.
IS THERE ANY CASE LAW TO SUPPORT YOUR ANSWER OR SOME STATUTE WORDED
PLEASE ADVICE
01 August 2009
yes it is taxable under the head income from other sources.
01 August 2009
Yes it is taxable u/h other sources after deduction of expenses .
01 August 2009
If the stipend is earned as an employee of an organisation in India, and you are sponsored by such a organisation, the employer-employee relation should be established and in that event the stipend becomes taxable under the head the salaries. In the absence of an employer-employee relation, the stipend becomes taxable under the head income from other sources.
If the stipend is taxable as salary, the deduction available to you is standard deduction. If it is taxable under the head income from other sources, then you can claim any other expenditure laid out or expended wholly and exclusively for the purpose of earning of stipend income. This deduction is allowable under Section 57 (iii) of the Income-tax Act ‘61.
If the stipend is taxable as salary, the deduction available to you is standard deduction. If it is taxable under the head income from other sources, then you can claim any other expenditure laid out or expended wholly and exclusively for the purpose of earning of stipend income. This deduction is allowable under Section 57 (iii) of the Income-tax Act ‘61.
Message likes :
1 times
01 August 2009
When it is not taxable...........
Income-Tax Appellate Tribunal, Jaipur Bench in Sudhir Kumar Sharma versus ITO (1983) 15 Taxman 100 (Mag.).
The Tribunal in this case had held that the stipend received by an articled clerk from a Chartered Accountant was 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.
3 Bangalore Bench of Income-Tax Appellate Tribunal in ITO versus Dr G. N. Ramachandran 1 ITD 902, where the Tribunal held that the stipend received to meet the cost of education would be exempt under Section 10(16).
However in all the three cases the assesee had to prove that the stipend received by the them was in the nature of scholorship to meet the cost of education.
It implies that, stipend is in the nature of scholorship, will have to proved in each case to claim exemption.
Income-Tax Appellate Tribunal, Jaipur Bench in Sudhir Kumar Sharma versus ITO (1983) 15 Taxman 100 (Mag.).
The Tribunal in this case had held that the stipend received by an articled clerk from a Chartered Accountant was 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.
3 Bangalore Bench of Income-Tax Appellate Tribunal in ITO versus Dr G. N. Ramachandran 1 ITD 902, where the Tribunal held that the stipend received to meet the cost of education would be exempt under Section 10(16).
However in all the three cases the assesee had to prove that the stipend received by the them was in the nature of scholorship to meet the cost of education.
It implies that, stipend is in the nature of scholorship, will have to proved in each case to claim exemption.
Message likes :
4 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Applicability
- Where to show the RCM on Rent paid to unregistered landlord
- Is Aadhar PAN linking required for opening bank account?
- CPC Processing IT Return for AY 2023-24 without recognizing the Taxation Option under New Regime
- TDS NUMBER SURRENDER
- Gst Sales of FY 2023-24
- Offsetting interest income against derivative trading losses
- Application of 115BAC
- Legal heir raised refund , but refund issued to the closed account of deceased.
- RCM - commercial rent paid to URP under GST
- Whether still royalty
- 20% OF DEMAND PAYMENT IN APPEAL
- Issue of gst e invoice
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
- Regarding Resignation by Auditor from Pvt. Ltd.
Trending Online Classes
-
Excel Mastery Program
CA Rishabh Pugalia
CAclubindia
