MR. ISHAAN COMMENT KYON DELETE KAR DIYA
Hatim Ali
(Associates)
(21 Points)
Replied 12 March 2012
Stipend is not taxable, since Employer employee relationship is missing, also being a trainee you do not get all the benefit enjoyed by the employee
Ankit
(CA Final)
(75 Points)
Replied 12 March 2012
stipend given to CA articles are exempt u/s 10 ( 16 ), refer to attached case law of " Sudhir Kumar Sharma V. ITO " seniors reply appreciable
CA SACHIN VIJ
(Chartered Accountant)
(112 Points)
Replied 13 March 2012
Section 10(16) is not applicable on stipend. it is for scholarship while stipend is not scholarship
Section 10. In computing the total income of a previous year of any person, any income falling within any of the following clauses shall not be included:
(16) scholarships granted to meet the cost of education;
Vishal Aggarwal
(Working at Lalit Purushottam Dass & Co.)
(38 Points)
Replied 13 March 2012
Is Stipend Really a Taxable Income?????
dileep singh sarlam
(Training in the CA Firm)
(25 Points)
Replied 13 March 2012
Dear, Stipend is not taxable under the head salary & in any other heads because the relationship between article & principle not creat relation of employer & employee. article is not employee for CA he is apprentice. Practicaly stipen received by article is to.................. much below the taxable income.
CA SACHIN VIJ
(Chartered Accountant)
(112 Points)
Replied 13 March 2012
Section 10(16) is not applicable on stipend. Section 10(16) is for scholarship while stipend is not scholarship.
Section 10. In computing the total income of a previous year of any person, any income falling within any of the following clauses shall not be included:
(16) scholarships granted to meet the cost of education;
ICAI has prescibed min Rs.1000/- as stipend but it is not scholarship. Scholarship should be provided by ICAI itself. Also Article may have received Rs.15-20K as stipend from big 4 firms and he can not get his income excluded from the ambit of taxation. Further it is foolish to say that stipend is exempt upto minimum exemption limit only. Thus Stipend is taxable.
Deva R
(student)
(83 Points)
Replied 16 March 2012
according to the salary defition stipend is also a salary and hence it is taxable my friend.
Ankit
(CA Final)
(75 Points)
Replied 16 March 2012
Stipend recd. by an intern does not include in salary, (experts comments welcomed)
AS PER INCOME TAX ACT DEFINITION OF SALARY INCLUDES:-
(i) wages;
(ii) any annuity or pension;
(iii) any gratuity
(iv) any fees , commissions, perquisites or profits in lieu of or in addition to any salary or wages;
(v) any advance of salary;
(va) any payment received by an employee in respect of any period of leave not availed of by him;]
(vi) the annual accretion to the balance at the credit of an employee participating in a recognised provident fund, to the extent to which it is chargeable to tax under rule 6 of Part A of the Fourth Schedule;
(vii) the aggregate of all sums that are comprised in the transferred balance as referred to in sub-rule (2) of rule 11 of Part A of the Fourth Schedule of an employee participating in a recognised provident fund, to the extent to which it is chargeable to tax under sub-rule (4) thereof; and
[(viii) the contribution made by the Central Government [or any other employer] in the previous year, to the account of an employee under a pension scheme referred to in section 80CCD;]
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