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income tax

Aamir pathan (Final ARTICLE Assistant) (68 Points)

30 July 2010

is stiphen taxable

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7 Replies

Harpreet (* * * * * *) (1670 Points)
Replied 30 July 2010

yes it is taxable if crossed taxable income

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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
	is stiphen taxable

Stipend is absolutely taxable, that is of course if it exceeds the B.E.L!!!

(Guest)

taxability of stipend (Income Tax)
This query is : resolved
brijmohanpareek ( Author ) 02 June 2010	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


Aditya Maheshwari ( Expert ) 02 June 2010	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?


Aditya Maheshwari ( Expert ) 02 June 2010	Even if the same is not taxable as salary income it is taxable as income from other sources.


B.Chackrapani Warrier ( Expert ) 02 June 2010	Stipend received by an articled assistant is tax free. Citation- Sudhirkumar Sharma Vs.ITO(1983)17 TTJ(Jp-Tri)228.


Aditya Maheshwari ( Expert ) 02 June 2010	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).


CA Shivang ( Expert ) 02 June 2010	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.


Aditya Maheshwari ( Expert ) 02 June 2010	Yes it will be taxable under the head income from other sources only.