Mr. X recieved Rs. 30LAKS by Govt. as educational scholarship. Rs. 20LAKHS is paid as a fees. Remaining is in Bank account. Is that amount Taxable if not utilised as fees?
Vivek
(Finally passed CA Final...!!!!!)
(1097 Points)
Replied 16 January 2010
no... Scholarships are exempt.... Section i think 10(16)..... Not sure... But it is exempt... thats sure..
C.Balaji
(Learner)
(1867 Points)
Replied 27 January 2010
Mr.Nirav
In feel, Scholarship received is exempt from tax sec 10(16)......but any income arising from the unutilised amount is taxable.....
Any scholarship granted to meet the cost of education.Section 10(16)
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