CA CMA CS VIRAG SHAH (9773395720) (759 Points)
03 June 2010
WHETHER STIFEND RECEIVED IN ARTICLESHIP IS TAXABLE INCOME UNDER OTHER SOURCE OR EXEMPTED INCOME UNDER SECTION 10(16) AS A SCHOLARSHIP ?
PLEASE REPLY URGENTLY.....................
PLEASE SPECIFY RELATED CASE LAWS ALSO..................
THANK YOU ALL IN ADVANCED.....................
Aditya Maheshwari
(CA in Practice)
(35867 Points)
Replied 03 June 2010
Stipend received during articleship is taxable under the head income from other sources.
A detailed discussion has been made in /forum/stipend-81580.asp where it has been held that stipend is taxable.
Madhusudan Kabra
(knowledge seeker)
(1779 Points)
Replied 03 June 2010
This decision by Jaipur Tribunal is of immense help to all the articles for claiming stipend as exempt u/s. 10(16) of the Income-tax Act, 1961.
The stipend received by an Article Clerk from a Chartered Accountant is exempt, since it is not paid for rendering services by the Article Clerk, but is paid to him to meet the cost of books, coaching fee, etc. – Sudhirkumar Sharma v. ITO – 15 Taxman (Mag) 100 (JP).
Regards
Madhusudan Kabra
CA.G.Muguntha Narayanan
(Internal Auditor at TVS Motors)
(2195 Points)
Replied 03 June 2010
Stipend received is exempt fom tax.
Aditya Maheshwari
(CA in Practice)
(35867 Points)
Replied 03 June 2010
Dear Madhusudan,
The case law you are referring is of Sudhir Kumar Sharma (1983) 15 Taxmann 100 of ITAT Jaipur Bench.
Orders of the ITAT have no validity in the income tax laws and on the deaprtment. Further in the same case law there is mention that the same is applicable before introduction of rule 32B prescribing the minimum stipend rules was prescribed by the Institute which do not follow the follow the practice of paying a meager amount to meet the cost of books, fees, etc and hence cannot be termed as receipt for the purpose of meeting the cost of education to be exempt u/s 10(16).
Badal Paswan
( STUDENT)
(66 Points)
Replied 03 June 2010
hell, sir
i have a problem related with tds, actually in - Section - 194 c - if the transporter shows a PAN card on that case he is not liable to deduct tax, i want to know that is any limitation of such amount wich is not liable to deduct tax or it is fully exempted while transporter shows the PAN Card.
Please reply soon.
CA. Gurdeep Singh Chawla
(C A)
(7080 Points)
Replied 03 June 2010
fully exempted while transporter shows the PAN Card.
priyanka bathwal
(student)
(160 Points)
Replied 04 June 2010
Nalini Munot
(CA)
(51 Points)
Replied 04 June 2010
In Sudhir Kumar verma Vs ITO, the assesse claimed that stipend was exempt u/s 10(16) on various grounds like- learning, no contribution expected, to meet cost of books, coaching fee, examination fees etc...The decision was finally given in assessee's favor.
So Stipend received is exempted from TAX
RAMBABU PATHAK
(CWA CS FINANCE OFFICER. COAL INDIA LIMITED)
(36 Points)
Replied 04 June 2010
I agree to Mr. Madhusudhan.....The Stipend received by the artcle clerk is exempt u/s 10(16).....follow the decision of Jaipur Tribunal.
Shobhit
(CA, CS)
(100 Points)
Replied 04 June 2010
Hii...
The Stipend Income is taxable & not exempt
The above judgement Sudhir Kumar verma Vs ITO (1983) got overruled later... stipend is very much taxable ..
Also Mr. Maheshwari has rightly said "Orders of the ITAT have no validity in the income tax laws and on the department"
TDS is deducted from the stipend of all those article assistants who are getting the yearly stipend exceeding the exemption level. You can ask any of the BIG 4 articles / or those undergoing Industrial Training.
So, be prepared for paying taxes.
Correct me if I am wrong.
Sandeep Kumar
(learner)
(81 Points)
Replied 04 June 2010
Hi
I agree to Mr. Madhusudhan.....The Stipend received by the artcle clerk is exempt u/s 10(16).....follow the decision of Jaipur Tribunal.
Sandeep Kumar
(learner)
(81 Points)
Replied 04 June 2010
Hi
I agree to Mr. Madhusudhan.....The Stipend received by the artcle clerk is exempt u/s 10(16).....follow the decision of Jaipur Tribunal.
Sandeep Kumar
(learner)
(81 Points)
Replied 04 June 2010
Hi
I agree to Mr. Madhusudhan.....The Stipend received by the artcle clerk is exempt u/s 10(16).....follow the decision of Jaipur Tribunal.
Aditya Maheshwari
(CA in Practice)
(35867 Points)
Replied 04 June 2010
Please read the case law u are referring to
In the case law there is mention that the same is applicable before introduction of rule 32B prescribing the minimum stipend rules was prescribed by the Institute which do not follow the follow the practice of paying a meager amount to meet the cost of books, fees, etc and hence cannot be termed as receipt for the purpose of meeting the cost of education to be exempt u/s 10(16).
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
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