Need to pay income tax scholarship

Ketan (STUDENT) (1869 Points)

10 December 2013  

Learn IT-I have received Scholarship from a reputed Institution for futher studies.Do I need to pay Income tax on this?

December 10, 2013 at 6:59am

Ajay Jadeja asked me that he has received scholarship from a reputed educational Institute around 10 Lacs.Whether this amount is taxable under Income tax since it is more than exemption limit of Rs.200000/-.

 

I replied....

 

Ajay..As per section 10(16) of Income tax Act if you have received any scholarship granted to meet cost of education then it is exempt from tax.

 

Therefore even if you have received scholarship of Rs.10 Lacs,the full amount will not be taxable under Income tax.

 

Hope this clear your concept.

 

Cheers

Sumit Lodha