I have received a stipend from co op bank in the fy 2018/19,
My Question is whether this income is taxable or exempt and if it is taxable then which comes under head of income?
SALARY OR IFOS?
Thanks in advance...
2 Replies
Vijay Prakash
(155 Points)
Replied 22 August 2020
As per Section 10(16) IT Act, stipend is a scholarship to meet the expenses of Education. So it is fully exempted from IT.
Sagar Patel
(Tax and Business Consultant)
(11611 Points)
Replied 23 August 2020
There is a different view on this matter regarding Exempt u/s 10(16) of IT act, as Scholarship.
As per my view, it's not a Scholarship.
Scholarship is given free of cost to meet the Expenses of study of students, where a stipend is paid for your work, yes, there is a element of learning, but student is paid for his/her work as like other employees of Company.
So, it can't be considered as scholarship, and we can't take Exemption as scholarship.
It's taxable as "income from other sources" as there is no employee employer relationship between article and Principal.
But, if TDS is deducted u/s 192 than it's taxable as "Salaries"
As per my view, it's not a Scholarship.
Scholarship is given free of cost to meet the Expenses of study of students, where a stipend is paid for your work, yes, there is a element of learning, but student is paid for his/her work as like other employees of Company.
So, it can't be considered as scholarship, and we can't take Exemption as scholarship.
It's taxable as "income from other sources" as there is no employee employer relationship between article and Principal.
But, if TDS is deducted u/s 192 than it's taxable as "Salaries"
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