What is purported to br written for ca stipend payment on annual basis?
Answers
Explanation:
As part of the CA Curriculum, a CA Student is required to complete 3 years of Articleship Training under a Chartered Accountant who in turn pays him Articleship Stipend for the work done by the CA Student.
Recommended Read: Procedure for Articleship Registration
A CA Student becomes eligible to start Articleship Training on clearing Group I of the IPCC. Although, a CA Student becomes eligible to start Articleship Training on clearing IPCC Group I, he is eligible to enrol himself only after clearing both the groups of IPCC.
▶Stipend paid by the CA firm to Article Clerk ( apprentice ) is exempt from tax under section 10 of income tax act to the extent of rates prescribed by the ICAI. Stipend paid over and above the prescribed rates by ICAI are taxable . Taxable head would be Salary or Income from other Sources is debatable . In my opinion , as Employer _ Employee relationship does not exist , it must be offered under head Income from other sources.