23 January 2016
While pursuing MD the Doctor is receiving stipend. This stipend can not be termed as ‘scholarship granted to meet the cost of education’ which is exempt from Income Tax under the section 10(16). This is due to the fact that the doctor provides services as a regular employee and enriches his professional experience. His work is more in the nature of a professional's work rather than a student. So, in my view, stipend is taxable in such cases.
24 January 2016
Stipend received during pursuing the MD, is taxable under the head of 'Income from Other Sources'. Because, no employer-employee relationship exist while pursuing the MD. Therefore, such income is not taxable under the head of salary.
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