Taxability of articles stipend

Income under head salaries is taxable only when employer-employee relationship exists or when there is full control of employer over employee and i dont think so that articles are employee of their CA's.They r just trainees.

Originally posted by : Dhiren
	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

Correct Your Self.Its Not 2500.....Its 1500 in Third Year

The Stipend income of Articles is taxable under the head Income from other Sources and the case law quoted above is very old and this case law has been superseded and that implies that Stipend income is taxable.  

Hi friends

How has this case been superceded?
By which finance act and/or which judgement?

We still dont have a clear cut definition of "Scholarship" for the purpose of 10(16), but in parlance, it means

"A grant of financial aid awarded to a student, as for the purpose of attending a college.",

which i feel the courts will view liberally, because the act only refers to scholarship granted for the purpose of education, (again, just education, no tags attached)

On what basis do we step over the HC decision in 1983? ICAI minimum stipend is not even enough to meet the cost of education!! Lolz.... It is not possible to draw the line hard and fast for all cases...

Till there is something concrete pointing to the contrary, Saranraj has the first and last answer to this question.

I am also personally of the view that gargantuan stipends should be taxed as salary, cos form 102 and 103 clearly provide the status of employer to the CA.
(and of course, they are not entirely for just meeting the cost of education, there is a clear reward for work in such large stipends) All said and done, TDS is being deducted u/s 192 for such people....