nice one.

not taxable.....

Sorry but i am unaware of this clause.. i disagree that there is an employer-employee relationship. As far as my knowledge goes we are not paid salary we are paid stipend. our employer is not obligated to pay FBT for us and neither are we guided by minimum wage Act.

can someone please advice me with a proper supporting if i am wrong.

There exist an employer and employee relationship, as on joining of articleship we have to sign form 102 i.e  deed of article and where it is clearly written about the employer and employee relationship between the principal and article assistant. So there is no question about employer and employee's relationship existence as it is amply clear from Form 102.

I disagree again.. as per for 103 the declaration under 102 is a 'DEED OF ARTICLES' not an employer employee bond. Also as per the first part in the Form 102 it says Employer but the Third Part is and 'ARTICLED CLERK' not 'EMPLOYEE'. and if we are employees as you claim then why isnt FBT paid on benefits given to us..

plz do revert back it would be interesting to know the fact.

Thanx

Please specify the benefits which are given to an Article Assistant and on which FBT must be levied as per I.T. Act, 1961 and the employer doesn't inlude those benefit in computing the value of Fringe Benefit.

Plz do reply.........thnx

I do believe that the case presented by Aakashdeep Singh makes it clear that stipend is not taxable unless it was quashed in any successive case.

According to me we come under Apperenticeship Act, 1961 unlike employees of an organisation. The Act says that Trainee has to be paid a minimum sum as prescribed by that education board and we are also not eligible for bonuses and incentive schemes.

As per my knowledge no FBT is paid on the travel expenses paid to us.

stipend is not taxable in income tax law.......

Right now i am in CA Final and taking satellite based coaching classes of Direct Tax from Dr. Girish Ahuja, on asking him this question whether to include stipend in computing gross total income or not? He replied that stipend would be included while computing Gross Total Income under the head Salary. And when i have refered the same tribunal case to the Sir, he told that this is a very old case and Income tax is not govern by the decision held in Tribunal case.

So i think its clear now, that it will form part of Gross Total Income under the head Salary.

And Regarding FBT, the employer includes conveyane and travelling expenses reimbursed to the article assistant while computing Fringe Benefit value as per my knowledge.

Boss first say whose stipend crosses or even touches the basic exemption limit........?

Originally posted by : M Bhushan Shashikanth
	Boss first say whose stipend crosses or even touches the basic exemption limit........?

First of all there may be other income so by adding them up with stipend, total income may cross the exemption limit. And 2ndly there are some article working in big firms whose stipend are around 10 to 15 thousand per month. So the basic thing is that, as we r doing CA  we should know the treatment of any income arising to any assessee.

thanks everyone for sharing ur views here.

SUDHIR KR SHARMA Vs ITO stipend received by article is fully exempt from tax.

Stipend received by article is treated as scholarship(as it is received to meet the exp. of his books classes etc.) so it is exempt from tax U/s 10(16)

thanx

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yes it is taxable.......