Fellowship is taxable or not?

As per Sec.10(16) of the Act, the full amount of scholarship granted to meet the cost of education is exempted.

And ‘Cost of education’ includes not only the tuition fees but all other expenses which are incidental to acquiring education. Scholarship may have been given by Govt., University, Board, Trust, etc. The exemption is irrespective of actual expenditure incurred by the recipient to meet the cost of education. 

thanks sir

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Riyaz is asking about FELLOWSHIP and Kundu is replying for SCHOLARSHIP. Section 10(16) says about Scholarship but not Fellowship.

Originally posted by : Akash Varma
	Riyaz is asking about FELLOWSHIP and Kundu is replying for SCHOLARSHIP. Section 10(16) says about Scholarship but not Fellowship.

Dear My. Akash,

Would you please distinguish between fellowship and scholarship? Help me to increase my knowledge.

 

Dear Mr Kundu, You are taking it other way. It's my query from you because 10(16) says everywhere about scholarship exemption but not about fellowship. My accounts team is not convinced that fellowship is exempted. Can you help me by sharing any documented proof which can clear in black and white that Fellowship from UGC is exempted?

Sorry Mr. Akash, my comment was not made to hurt you, I thought you have some information regarding the issue, so I really wanted to know that for sake of my knowledge.

I don't have any documented evidence which talks specifically about taxability of fellowship. In common parlance, we use the words Fellowship and Scholarship interchangeably, that's why I opined the same. Further, it was totally Act's language. The "Fellowship" word is not included there in the section. So, it can be assumed that if the amount received fits into that definition then the tax is exempt, otherwise taxable, be it Scholarship or Fellowship.

Futhermore, to support my view I have found another answer the link of which is as follows -

https://www.caclubindia.com/forum/is-ugc-fellowship-is-taxable-389894.asp   

Means Kundu is also not clear about that.

 

Riyaz, I suggest you to clear it first before assuming as exempted.

Till now I have no document which says that UGC Fellowship is exempted.

Scholarship & Fellowship are two different subjects.

Section 10(16) says about scholarship but not about fellowship!!