Q & A: Stipend for Articles
P.D.RUNGTA
Query: Stipend for Articles
Good morning everyone...
I have one question to this forum:
Is the stipend received by articled clerks during industrial training period taxable?
If one draws a stipend of Rs.20000 every month in his training period, should TDS be deducted from it?
Best Regards,
Puja Agarwal
ACA
Reply:1
Puja Ji
Stipened received during industrial training will be chargable to tax according to the tax slab rate, as the same is not specificacly excluded. If any one draws a stipend of Rs.20000/- then the employer should deduct TDS subject to exemption limit and declaration given by trainee.
--
*Thanks & Regards*
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*CA Bikash Bogi **(Partner) **SBR & CO. **CHARTERED ACCOUNTANTS*
*Lokhandwala Complex, **Mumbai (India) ,**+91-9930934403, Email: ** **
sbr...@gmail.com* <sbr...@gmail.com>
Reply:2
why not?it is salary for doing job as as trainee
Arindam Roy
Reply:3
Dear Puja Ji
TDS U/S192B HAS BEEN DEDUCTED ON THE BASIS OF INCOME OF AN INDIVIDUAL
IRRESPECTIVE OF THE NATURE OF INCOME i.e SALARY OR STIPENED.
HENCE WE HAVE TO DEDUCT TDS IF TOTAL INCOME CROSS THE TAXABLE LIMIT
ACCORDING TO SLAB APPLICABLE TO INDIVIDUAL.
Best Regards
R.K.Keshari
9831354483
Reply:4
Yes, stipend will be taxed as salary Income and TDS will be deductable ,if
it crosses exemption threshold
Rgds
CA.Anil Agarwal
33/1 N S Road, 332 Marshall House
Kolkata-700001
Landline:033 22102227
Fax : 033 22107539
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M.Com.,LL.B.,AICWA.,DISA(ICAI).,FCA
Member EIRC ICAI (2010-12)
P.D.Rungta & Co.
Chartered Accountants
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lalit kumar agarwal
Lalit Kumar Agrawalla, fca
Mob. No. 9332014316
On Mon, 20 Dec 2010 12:19:52 +0530 wrote
>
Query: Stipend for Articles
Good morning everyone...
I have one question to this forum:
Is the stipend received by articled clerks during industrial training period
taxable?
If one draws a stipend of Rs.20000 every month in his training period,
should TDS be deducted from it?
Best Regards,
Puja Agarwal
ACA
Reply:1
Puja Ji
Stipened received during industrial training will be chargable to tax according
to the tax slab rate, as the same is not specificacly excluded. If any one
draws a stipend of Rs.20000/- then the employer should deduct TDS subject to
exemption limit and declaration given by trainee.
--
*Thanks & Regards*
* *
*CA Bikash Bogi **(Partner) **SBR & CO. **CHARTERED ACCOUNTANTS*
*Lokhandwala Complex, **Mumbai (India) ,**+91-9930934403, Email: ** **
sbr...@gmail.com*
>
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rohit tulsian
CA Rohit Tulsian
Date: Tue, 21 Dec 2010 15:26:18 +0000
To: foru...@googlegroups.com
Subject: Re: [PDRUNGTA] Q & A: Stipend for Articles
From: lali...@rediffmail.com
P.D.RUNGTA
Q & A: Stipend for Articles
Good morning everyone...
I have one question to this forum:
Is the stipend received by articled clerks during industrial training period
taxable?
If one draws a stipend of Rs.20000 every month in his training period,
should TDS be deducted from it?
Best Regards,
Puja Agarwal
ACA
Some new Reply:1
stipend received is exempted from income tax. amount is not the criteria.
refer sec. 10(16) of IT Act.
Lalit Kumar Agrawalla, fca
Mob. No. 9332014316
Some new Reply:2
I beg to differ from Mr Lalit's view on taxability of Stipend received by
the articled clerks. Sec 10(16) refers to the 'shcolarships' received for
meeting the education expenses. In my opinion, stipend is taxable as per Law as
suggested by Mr. Bogi. As such tax as applicable should be deducted at source.
CA Rohit Tulsian
Some new Reply:3
I am agreed with the opinion of Mr Tulsian as none of the sub sections of
second 10 deals with the provision related to stipend
BRAJESH BHAGAT
Sent from BlackBerry® on Airtel
Some new Reply:4
Sir
I think 10(16) specifies the scholarships which are exempt and not all
scholarships are exempt
CA ATUL MEHTAA.P.MEHTA & ASSOCIATES39, Chakraberia Road (South)Kolkata - 700 025Mobile : 9830027784Office : +91+33+24741584
I agree with the view of Mr. Rohit Tulsyan
CA P.K.SINHAL
Some new Reply:5
An.articled. clerk .joins a chartered accountant with a view to learning the
work and receiving training.He does not contribute anything to the profession
of accounting at that time. Stipend is a type of scholarship granted to meet
the cost of education.
You may refer the case 15 Taxman (1983) 1OO(Jp Trib)Sudhir Kumar Sharma v
Income Tax Officer in this regard also.
Lalit Kumar Agrawalla, FCA,DISA
Mob. No. 9332014316
P.D.RUNGTA
Good morning everyone...
I have one question to this forum:
Is the stipend received by articled clerks during industrial training period
taxable?
If one draws a stipend of Rs.20000 every month in his training period,
should TDS be deducted from it?
Best Regards,
Puja Agarwal
ACA
New Reply:1
I believe that the question of taxability is a function of the
income of the person- if it is above the threshold limit, then
regardless of whether the perosn is an articled clerk or not, he
/she would be subject to withholding taxes.
rgds
CA Joydeb Chatterjee
New Reply:2
if the stipend is paid above the taxable limit it will be taxabale as
per the norms of the I.T.Act . if the stipend is 20000 it surely is
taxable.
regards
sunil agrawal
9831044418
*Thanks & Regards*