Dear all stipend is not taxable. It is exempt u/s 10 (16). It is definitely schlorship. One cannot say that there is employer-employee relationship. Rather it can be said that there is mentor (trainor) -trainee relationship. The return that we get isnt salary rather it can be said apprentice. I think this explanations are clear enoiugh to conclude that stipend is exempt.
Re : Stipend taxable or exempt
Page no : 3
CA. Shikha
(Chartered Accountant)
(4143 Points)
Replied 05 December 2009
stipend is not taxable under income tax act
CA. Megha Topiwala
(Job)
(1534 Points)
Replied 05 December 2009
i hv seen that tds is deducted from stipend given to articles of big4's... where my fnds were also working.... so can u plz justify....
sumit singhal
(CA fianl student)
(48 Points)
Replied 05 December 2009
Dear all, i asked this question from Dr. Girish Ahuja and he answered that it is taxable because employer-emplyee relationship exists..
Vikram
(CS)
(119 Points)
Replied 05 December 2009
Its definetely taxable. ITAT ruling is not a law & contrary stand can always be taken.
I also appreciate Sunali's observations
Mohd Javed Khan
(CA FINAL)
(622 Points)
Replied 06 December 2009
ya its taxable yaar as a salary income
Ansari
(ca final)
(444 Points)
Replied 06 December 2009
| Originally posted by :Megha Shah | ||
| " | It is taxable if it crosses maximum exemption limit.... | " |
Vaidehi
(articled assistant- studin PCC)
(104 Points)
Replied 06 December 2009
hie al.....stipend is nt taxable..........
n @ sumit singhal.........fr ur information it is nt creatin an eployer employee relationship it creats a studebt principal relationship........v r workin as apprentice.......
so obviously its nt taxable
Akash Pincha
(CHARTERED ACCOUNTANT)
(188 Points)
Replied 07 December 2009
Thanks everyone for sharing the views here about whether stipend received by an article assistant from his/her principal will form part of Gross Total Income under the head salary or not ?
And the views received here shows that we (who are doing CA or has became CA) are not clear that the stipend received by an article will be forming part of Gross Total Income or not.
SO still the discussion remains the same "Is Stipend received will form part of Gross Total Income under Income Tax Act, 1961" ?
Anyone having any views can post it here about the above discussion. Please do specify reason for your views.
CA Mayur Sojrani
(CA)
(318 Points)
Replied 08 December 2009
It's taxable as there exist employer - employee relationship & even professional tax & TDS is also deducted from the Gross Stipend.
Earlier it was quite Debatable issue & there are also judgements regarding it's non taxability .
But Now the Instituti ( ICAI ) had issued some circullar . in which it's clearly mention that " Stipend is taxable if it's exceeds the tax slab "
Sourav Didwania
(CA , B.com(H), )
(310 Points)
Replied 08 December 2009
Friend
Stipend is counted as "Income from Other Sources" and is not exempted under any Section of the Income Tax Act.
Hence is Taxable
Sourav Didwania
(CA , B.com(H), )
(310 Points)
Replied 08 December 2009
You can't count it as a salary as there exists Trainer - trainee relationship.
aditya
(article)
(47 Points)
Replied 09 December 2009
yes its taxable if it is cross the basic exemption limit.
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