INCOME TAX16 Sept 2026
Got a stipend while studying? ₹18.34 lakh ITAT case explains when students can claim income-tax exemption | Mint
A postgraduate medical student got ₹18.34 lakh as a stipend from Aligarh Muslim University. The tax department called it taxable salary. The Delhi Income Tax Appellate Tribunal (ITAT) disagreed. It said the money was tied to her education and compulsory residency training, so the Section 10(16) exemption applies. If you get a stipend while studying, keep proof it links to your course.
Key Statutory Highlights
- A postgraduate medical student received ₹18,34,578 as a stipend from Aligarh Muslim University during her full-time MS (General Surgery) course.
- The tax department taxed the whole amount as salary, but the Delhi ITAT held the stipend was linked to her education and compulsory residency training.
- The tribunal allowed the Section 10(16) exemption, saying what matters is whether the payment is a scholarship to meet the cost of education.
Actionable Advice for Taxpayers / Founders:If you receive a stipend during higher education, keep documents linking it to your course and compulsory training, and check with a tax professional before treating it as exempt.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
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