Dear Pon, I would highly appriciate, if you could provide some case laws for exemptions provided for scholorships and stipend under Income Tax Act. It may be useful for us. Best Regards, Divakar
From India, Bangalore
9From India, Bangalore
As per my best knowledge any trainee is coming for training purpose which indirectly states that their approach is of getting knowledge/skill for the said reason Stipend is paid which is a periodic payment, esp. a scholarship or fellowship allowance granted to a student. Here the employee employer relation does not exist and no labor law is applicable, whether it is ESI/PF/MW/TDS etc.
But would like the seniors to guide further.
From India, Ahmadabad
But would like the seniors to guide further.
From India, Ahmadabad
you can refer the cases as highlighted in the article.
The Hindu : Stipends are not taxable
From India, Lucknow
The Hindu : Stipends are not taxable
From India, Lucknow
STIPEND IS ONLY TAX FREE IN CASE OF \"STUDENT\" IS STUDYING ANY COURSE AS PER RULES OF UNIVERSITY OR AICTE THEN ONLY THE STIPEND IS TAX FREE. IT IS CALLED AS \"VIDYA VETAN\". RAMAKANT
From India, Pune
From India, Pune
Agree with Ramakanth.
Section 10(16) of the Income Tax Act provides for exemption of scholopship received to meet the cost of education. This is required to be paid for the pursiut of knowledge, resulting in awarding a degree/completion of education course is exempt.
However any payments received on training which do not amount to education/recongnised corse by an educational institute, do not qualify for exemption.
The facts of the case specified in the post is clear and any amount paid is chargeable to tax under income tax act.
Best Regards,
Divakar
From India, Bangalore
Section 10(16) of the Income Tax Act provides for exemption of scholopship received to meet the cost of education. This is required to be paid for the pursiut of knowledge, resulting in awarding a degree/completion of education course is exempt.
However any payments received on training which do not amount to education/recongnised corse by an educational institute, do not qualify for exemption.
The facts of the case specified in the post is clear and any amount paid is chargeable to tax under income tax act.
Best Regards,
Divakar
From India, Bangalore
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Circular No 1-2018 Processing of income-tax returns under section 143(1) of the Income-tax Act .pdf
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