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income as a stipend

mukund (manager) (481 Points)

28 August 2018

My nephew is doing his M D in semi govt medical college and he gets stipend . so is this stipend income is taxable or exempt?

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6 Replies

Sarath Rajendran (Nil) (2791 Points)
Replied 28 August 2018

Exempted Sec.10(16)

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Akhil Suresh (81 Points)
Replied 28 August 2018

It depends. If the stipend is to compensate the educational expenses then it is exempt u/s 10(16). If the stipend is to gain the practical experience the it may be treated as salary and will be taxed.

mukund (manager) (481 Points)
Replied 28 August 2018

How can I differentiate between Salary and stipend as he is doing his M D in the same college which is giving stipend . so acc. to me it is to compansate the further educational expenses. Am I right?