is stiphen taxable
Harpreet
(* * * * * *)
(1670 Points)
Replied 30 July 2010
yes it is taxable if crossed taxable income
CA Trinath Galla
(student)
(3130 Points)
Replied 30 July 2010
No stipend is exempted under some sub-section of sec.10.
i think so.
think there is also a case law on this.........will share with u once i get dat.
suji
(student)
(241 Points)
Replied 30 July 2010
| Originally posted by : aamir pathan | ||
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is stiphen taxable |
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Stipend is absolutely taxable, that is of course if it exceeds the B.E.L!!!
taxability of stipend (Income Tax) |
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| This query is : resolved | |
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brijmohanpareek
( Author ) |
though I agree with your contention that stipend is differen from salary but still I think there is no employer employee relationship between pricipal and trainee |
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Aditya Maheshwari
( Expert ) |
Have u read the form 102? It reads as Articles of apprenticeship made on the …………………………………….. day of ……………………………… Two thousand ………………………………………………………between ………………………………………………… …………………………………………………………..of ………………………………………………………………….. ……………………………………………………………………………………………………………………(hereinafter) called the Employer) of the first part, *[…………………………………………………………………… the Chartered Accountant in practice / partner of Messers ………………………………………………………………….Chartered Accountants in practice, employing the Employer of the first part (hereafter called the second employer) of the Second part] and …………………………………………………………………………………………………………. ………………………………………………………………………(hereinafter called the Articled Clerk) of the Second *third part So how come no employer - employee relationship? |
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Aditya Maheshwari
( Expert ) |
Even if the same is not taxable as salary income it is taxable as income from other sources. |
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B.Chackrapani Warrier 
( Expert ) |
Stipend received by an articled assistant is tax free. Citation- Sudhirkumar Sharma Vs.ITO(1983)17 TTJ(Jp-Tri)228. |
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Aditya Maheshwari
( Expert ) |
Dear Sir The case law referred is of Sudhir Kumar Sharma (1983) 15 Taxmann 100 of ITAT Jaipur Bench. Orders of the ITAT have no validity in the income tax laws and on the department. Further in the same case law there is mention that the same is applicable before introduction of rule 32B prescribing the minimum stipend rules was prescribed by the Institute which do not follow the follow the practice of paying a meager amount to meet the cost of books, fees, etc and hence cannot be termed as receipt for the purpose of meeting the cost of education to be exempt u/s 10(16). |
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CA Shivang
( Expert ) |
Agree to Aditya. It is Definately taxable...... But wil lbe taxed in the IOS... @ Aditya: Thanks for the form.. even i was not knowing it.. but i saw that Article is not treated as employee in the same form. SO i think it wil be under IOS only. |
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Aditya Maheshwari
( Expert ) |
Yes it will be taxable under the head income from other sources only. |
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GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
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