21 December 2009
Dear Sir/Madam, Is the stipend received by an article assistant exempted from Income Tax U/s 10(16) of the IT Act, 1961, as it states that "any scholarship received by an student to meet the cost education is fully exempted".
And if it not so, whether such income is liable for tax deduction, assuming it crosses the basic exemption limit.
21 December 2009
Article Stipend is taxable. Sec 10(16) doesnt include Stipend paid to Articles. Further there is no exemption or deduction available towards Stipend. But i guess you shouldnt be bothered as Stipend will never exceed basic exemption limit.
21 December 2009
Stipend is exempted under section 10(16) of The income tax Act,1961.
Citation :- Dr.Tahul Tugnait Vs. ITO (2009) 315 ITR 139 (Chd-Tri)
Quantum of the payment is immaterial. The payer has to satisfy/prove that there is no employer employee relation ship exists for the said payment.
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.
06 October 2014
Stipend, prima facie, should be treated as a scholarship and should be exempt, since Sec. 10(16) exempts all ``scholarships granted to meet the cost of education''. In CIT v V. K. Balachandran (1984) 147 ITR 4 (Mad)
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