When considering the taxability of stipend, the objective should be considered:
- If the objective of a stipend is not to meet education expenses but to compensate for the duties performed similarly to a full-time employee - stipend will be taxable under the head Salary. eg: Stipend paid to doctors
- If the objective is to give the means of supporting education, the stipend will be under the category of a scholarship and is exempt from tax. eg: research fellowships, awards for academic achievement.
Learn more about Income tax and stipend income