Is Articles stipend taxable as Income from other sources or Income from Salary??
18 Replies
bharat
(ARTICLE)
(86 Points)
Replied 08 April 2010
It's taxable unless there is specific exemption u/s 10. And I thing there are no exemption u/s 10 related to it.... So it is taxable..... Let's see what is the opinion of others.
saranraj
(CA FINAL)
(419 Points)
Replied 08 April 2010
Article stipend is not taxable... There is a case law in this regard.. The stand in the case law is that the article is helping his principal in carrying out his work and acquiring knowledge.
saranraj
(CA FINAL)
(419 Points)
Replied 08 April 2010
Here is the case law....
Attached File : 38 50 16 articleship stipend 10 16 exemption case law.pdf downloaded: 416 times
Nitin
(CA Final Student)
(78 Points)
Replied 08 April 2010
Thanks saranraj..
Please solve my connected query..
One of my friend is woking in a MNC as a trainee for M.Tech project purposes. Is the stipend derived from such work is taxable? If yes, under what head?
CA Ayush Agarwal
(Kolkata-Pune-Mumbai)
(27186 Points)
Replied 08 April 2010
Dear Saranraj......
The Case You Attached is Old One.
We Already Discussed on That Issue.......
it was from jaipur 1983
But Now It gone Taxable.......
Bcoz If U Give Salary as stipend say 20000 PM then How Can It Exempt......
Its Amended in Finance act
Vinay Ramachandran
(Chartered Accountant)
(168 Points)
Replied 08 April 2010
thnx for reply guys..........but under which head is it taxable......... Other sources or salary......??? There is a Employer employee relation b/w article and firm right???????
saranraj
(CA FINAL)
(419 Points)
Replied 08 April 2010
| Originally posted by : AYUSH AGRAWAL | ||
 |
Dear Saranraj...... The Case You Attached is Old One. We Already Discussed on That Issue....... it was from jaipur 1983 But Now It gone Taxable....... Bcoz If U Give Salary as stipend say 20000 PM then How Can It Exempt...... Its Amended in Finance act |
 |
Dear Aayush kindly provide me the proof for your above statement...
CA Ravi Sisodia
(CA,CS,CMA)
(32226 Points)
Replied 08 April 2010
Articles stipend is Exempt from tax.
CA Shiv
(Business Controller)
(2987 Points)
Replied 09 April 2010
Hello, i agree and the case is very old.. IF you recevie the stipend like what u get in BIG4 than its a good amount and certainly income will increase the maximum limit.
for the other question i will like to say that it will be taxable under the head Salaries, only.....
And for NITIN- it will be taxable under the head of salary only as it is in the form of salary( stipend)....
Shivish Verma
(C A)
(376 Points)
Replied 09 April 2010
In my Opinion, Stipend is not taxable U/s 10(16).
CA Ankur Dhamanaskar
(Student)
(295 Points)
Replied 09 April 2010
Stipend is not taxable if it is within the basic exemption limit for individuals. however it is taxable if it crosses that limit...............!!!
CA Ankur Dhamanaskar
(Student)
(295 Points)
Replied 09 April 2010
It is already discussed in club. please check the link......!!!
Dhiren Chheda
(Service)
(62 Points)
Replied 09 April 2010
In my Opinion, Stipend is exempted U/s 10 up to Minimum Stipend payable to Article Cleark as per rules framed by ICAI
for Fist Year Rs. 1000/- PM
for Second Year Rs. 1250/- PM
for Last Year Rs. 2500/- PM
if u are receiving stipend Rs. 2,00,000/- PA out of that following amount is exmpted from Tax
Rs. 12000/- for Fist Year
Rs. 15000/- for second year
Rs. 30000/- for Last year
Basant Jajoo
(CA)
(125 Points)
Replied 09 April 2010
No dear Its Not Taxable..... Exempt u/s 10 (16) - Scholarship granted to meet the cost of education
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