Stipend income

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rushank jain (Querist)
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05 February 2014 Hello everyone, would like to know whether stipend income is exempt ? however, ,this is a case law - sudhirsharma vs ITO, where it is declared as exempt. In my case, my principal has deducted tax at source on such stipend income. Now, when I claim this income as exempt income will there be any issue. since, TDS has been deducted ? (as form 26AS shows the amt of TDS for the relevant AY)

CA Alpesh Shah

CA Alpesh Shah (Expert)
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05 February 2014 the Income-tax Appellate Tribunal, Jaipur Bench has in the case of ‘Sudhirkumar Sharma vs. ITO’ 17 TTJ 226, held that the stipend received by an Article Clerk from a Chartered Accountant is exempt, since it is not paid for rendering services by the Article Clerk, but is paid to him to meet the cost of books, coaching fee, examination fee, etc.

You can claim the refund of TDS after filling the income tax return. but show the exempt income into the ITR.