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"In s. 10(16), scholarship is used in that sense of some
thing in educational opportunity which is given free. The
MAYA BAHADUR
SINGH TARAGI
SINGH TARAGI
Item 37 (C-3)
basic postulate of a scholarship in c 1. (16) as earlier
mentioned is that it is an income receipt. Nonetheless it is
excluded from the total income by being brought under s.
10. The view of the income-tax statute of a scholarship
therefore differs from the popular or dictionary, view of
'scholarship'. Whereas under the popular view,
scholarship is education made available gratis, the sense
in which the same expression is used in the I.T. Act is
positive payment made to a scholar for pursuit of his
education. If the scholarship is made free, it would not
naturally come within the ambit of s. 10(16). In the sense
of payment, made for studies, scholarship necessarily
means some payment made to person to meet the cost of
education, the payment being made to the person
pursuing the education and incurring the cost thereof.