CA. Rajeev Aggarwal (Chartered Accountant) (3424 Points)
16 December 2008stipend received by an article assistant is exempt under section 10(16) of income tax act.
Pls refer the attached file for your reference.
Jeet Biswas
(ACMA (in Service))
(5073 Points)
Replied 17 December 2008
its good that the clarification has been provided for. but i guess that apart frm a few exemptions, the majority of article trainees, wont come under the tax bracket(bcoz of the stipend) unless they hv good I.f.O.S. nevertheless, its very interesting as employer-employee relationship exists but rendering of service doesnt happen....
Vijay Budhwani
(AVP Tax)
(326 Points)
Replied 17 December 2008
Although we have a judicial precedent, many firms/companies deduct tax u/s 192B i.e. as TDS on salary from stipend.
CA. Rajeev Aggarwal
(Chartered Accountant)
(3424 Points)
Replied 17 December 2008
fill ur return and claim refund, so simple.
ishvar
(service)
(29 Points)
Replied 17 December 2008
Really a nice case law
But DEpartment may say that the minimum suggested by the ICAI will be exempted and the rest is taxable as salary.
so we have to find other case law for the same. Also what in case of amount received in case of secondment of articleship as per rule 54
CA Kavish Dhingra
(Chartered Accountant)
(125 Points)
Replied 17 December 2008
Prabeer
(B. COM (H) CA & CS Final)
(5484 Points)
Replied 18 December 2008
Interesting case & good debate done.
CA CS Akashdeep Singh
(Practicing CA)
(1394 Points)
Replied 18 December 2008
really good information but not apply in any case because article stipened is not enough to cover him tax slab rates
Surya Jain
(Student)
(944 Points)
Replied 18 December 2008
really very good, thanks for the attachment.
Surya
CAclubindia
