Is stipend taxable..in which heads of income it must fall.
i think stipend is not taxable as held in a judgement of Jaipur High Court but i am not sure of it.kindly ans for both.
24 Replies
CA Amit Kumar Shrivastava
(CHARTERED ACCOUNTANT)
(104 Points)
Replied 02 July 2010
| Originally posted by : rohit | ||
 |
Is stipend taxable..in which heads of income it must fall. i think stipend is not taxable as held in a judgement of Jaipur High Court but i am not sure of it.kindly ans for both. |
 |
YES STIPEND IS INCOME ,HENCE IT'S TAXABLE IN D HEAD OF I FROM OTHER SOURCES. IT IS NOT SALARY SINC THERE IS NOT RELATION OF EMPLOYEE & EMPLOYER (THIS Q HAS BEEN ASKED BY ME TO SIR V G GUPTA (NO.1 FACULTY ON DIRECT TAX IN DELHI)
Shudhanshu Agrawal
(Business)
(2570 Points)
Replied 02 July 2010
No i am not agree with it. Stipend is exempted from tax.
Shudhanshu Agrawal
(Business)
(2570 Points)
Replied 02 July 2010
Stipend received is exempted u/s 10(16) for more details follow the below link.
/forum/taxability-of-stipend-received-by-an-article-6313.asp?1=1&offset=2
CA Shiv
(Business Controller)
(2987 Points)
Replied 02 July 2010
YES it is TAXABLE under IOS.. and not exempt.. that views are not that correct...
Stipend is not given to meet the expense for studies and also it dont meet the conditions of 10(16).
There is no employer-employee relationship also... so we cannot tax in salary....
therefore to be taxed in IOS...
Aditya Maheshwari
(CA in Practice)
(35867 Points)
Replied 02 July 2010
Stipend received is taxable as it is not specifically exempt.
Visit this link.
/forum/stipend-81580.asp?1=1&offset=2.
And raviji please mention on what u are relying on to state that stipend is exempt from tax?
Aditya Maheshwari
(CA in Practice)
(35867 Points)
Replied 02 July 2010
The case law is of Sudhir Kumar Sharma (1983) 15 Taxmann 100 of ITAT Jaipur Bench which states that stipend received by CA student is exempt.
In the 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).
Lalit aggarwal
(.)
(371 Points)
Replied 02 July 2010
it is taxable under the head "Income From Other Sources" as employer nd employee relation does not exist...........
rohit
(CA Finalist)
(480 Points)
Replied 02 July 2010
thanx a lot so in short its not taxable....thanx a ton
Sharad Saini
(Student)
(286 Points)
Replied 03 July 2010
Stipend may be taxable or may not be taxable based on the fact of the case.
Scope of total income is defined u/s 5 which states that
(1) Subject to the provisions of this Act, the total income of any previous year of a person who is a resident includes all income from whatever source derived which
(a) is received or is deemed to be received in India in such year by or on behalf of such person ; or
(b) accrues or arises or is deemed to accrue or arise to him in India during such year ; or
(c) accrues or arises to him outside India during such year “
(a) is received or is deemed to be received in India in such year by or on behalf of such person ; or
(b) accrues or arises or is deemed to accrue or arise to him in India during such year ; or
(c) accrues or arises to him outside India during such year “
Thus all receipts are taxable unless exempt expressly under the I T Act. Stipend is not expressly exmept under the Act. Thus Stipend is certainly taxable income if it is purely being given in form of cost of living or as wages or salary or for any purpose but studies .
However, if the Stipend granted is for furthering education or gaining knowledge , same can be claimed exempt u/s 10[16] of the I T act . In this regard the decision of the Karnataka High Court in A. Ratnakar v.Addl. CIT [1981] 128 ITR 527 can be applied.This was also followed by Tribunal in case of Income-tax Officer v. Dr. G.N. Ramachandran [1 ITD 902]
stipend given to articles is for furthering education and gaining knowledge so it is exempt according to me......
nishi
(ca final)
(72 Points)
Replied 03 July 2010
nishi
(ca final)
(72 Points)
Replied 03 July 2010
Sagar Sharma
(CA Final Fianance Executive)
(111 Points)
Replied 03 July 2010
| Originally posted by : Shudhanshu Agrawal | ||
|
|
Stipend received is exempted u/s 10(16) for more details follow the below link. /forum/taxability-of-stipend-received-by-an-article-6313.asp?1=1&offset=2 |
|
I Agree with Sudhanshu Stipend is Exempt from Tax
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