PERSONAL TAX: Scholarship received as stipend abroad may be taxable

My daughter has got a scholarship for two years to study for a management college in Singapore. She will get a monthly stipend. Since it will be paid in Singapore will she have to pay tax on it? She is currently a taxpayer in India but will now quit her job for her higher studies.
—R N Krishnan

As per the provisions of section 10(16) of the Act, 'Scholarship granted to meet the cost of education' is an income exempt from taxation. Hence, a position can be taken that the scholarship receipts are not taxable in India. However, if the scholarship is received in the form a stipend for any work performed in Singapore, the same may be taxable. Further, salary earned from employment in India shall continue to be taxed in India, since the same is received for services rendered in India.

I am salaried employee and have been filing ITR 1 every year. I purchased a house in Bangalore this year and have given it on rent. In Mumbai I live with my parents, and pay rent to my father. Should I show the rental income I get, home loan repayment and rent I pay in the same form? Or are there separate forms for these?
—Vivek Bansal

The Income-tax department provides that the taxpayer having total income upto Rs 50 lakh under the specified heads shall be required to file its Income-tax return in the form ITR-1, where his income is under the specified heads, that is, income from one house property, income from salary and income from other sources. As mentioned, if your total income for the financial year is only from these specified sources and the same does not exceed Rs 50 lakh, you can continue filing your income-tax return in ITR-1.

The writer is director, Nangia Advisors LLP