Should tax be paid on ...............???

hello... trinath.....

as per ICAI rules stipend mentioned is d minimum stipend....hence d ca firms can pay even more than d limits prescribed.....

k  thanks for ur half reply

wat abt the tax incidence?

 yes trinath if you are getting stipend more than basic exm. limit then you have to pay the tax and the answer to 2nd qustion u got from Megha

ok

thanks yaar

No, u are not required to pay tax on stipend income

It is exempt under section 10(16) of Income tax Act

Pls refer the attached file

 Yes what Mr.Rajeev said is perfectly correct. Otherwise employer themselves would have deducted TDS.

yes, dat's right.......what Mr. Rajeev has said.......

the stipend is exempt under Sec.10(16)............

the judgment also suppourts the view.................

thanks every one

I agree with Mr. Rajeev but i have one more point if Big 4 are giving 10000 in that case also it does not mean whole 10K is taxable as it will be a combination of HRA, Transposrt allowance etc and you will be doing PF investment in any case so it wont be taxable....................

Thanks Mr.Rajeev, for the valuable info

NO need to pay Income Tax as it is exempt u/s 10(16)

so if stipend is exempt in the hands of article assistant, then what abt allowability of stipend paid in the hands of payer i.e ca... will d amt b allowable as expense????

plz do reply soon....

stipend will be allowed to the payer u/s 37.. general deductions.. as the same is normal expenditure in the course of profession.

Thank u sir